Rating information

Rating subjects

The total rating is divided into two main parts: financial security and ecological quality.

In case a certain project has specific properties that are not taken into account within the standard rating parameters, the additional parameter 'specific situations' is used. These specific situations can have either a positive or a negative influence on the project's total rating.

Relative weight of financial and ecological parameters

Since, at this moment, profitability is the most pressing and debated aspect of the (teak) reforestation projects, the financial parameters are given 18 % more weight than the ecological parameters. The ecological parameters can in principle be upgraded afterwards - albeit at considerably higher costs - whereas the financial parameters must be healthy from the start in order for the project to remain viable. In due time, when the reforestation branch is more mature and professional, and the average project is financially more stable, the ecological parameters will probably be given the same weight.

Transparency

In case certain aspects of a company that are rated are unclear, this parameter will be rated very conservatively. Transparency within a company thus translates into a higher rating.

Sicirec rating coverage

In order to provide all relevant information to (potential) investors, Sicirec intends to include the most important companies in her rating system in the near future.

Adjustments and feed-back

The rating system is publicly available and is constantly being updated on the basis of comments from companies and investors.

Every time we obtain new relevant information, the ratings are updated if necessary. Of course plantations are welcome at all times to provide Sicirec with information that may be relevant for (re-)assessing these ratings.

Disagreement about ratings

As is usual in the case of ratings, ratees may have different opinions than the rater. In such cases, the plantations are invited to provide Sicirec with additional information that may cause the ratings to be adjusted.

Requirements

One must bear in mind that these types of hardwood (Teak) plantations are a very young line of business, which has only just started to develop. Most reforestation companies on the market still have trouble meeting all financial and ecological requirements.

Tradable through Sicirec?

If rated, most companies active on the Dutch market would score lower than the companies shown in the table, presuming they would be allowed under Sicirec's umbrella and trading system at all.

The inclusion of any company in the Sicirec rating counts as an indication of quality in itself (companies with a rating of - or - - on most parameters excluded).

The lack of quality of other companies often doesn't make it worthwhile for Sicirec and her shareholders to establish a rating.

Nevertheless, due to lack of time, not all companies that would make a rating worthwhile are included in our ratings. This is also why a company that is not included in our ratings may not necessarily have a low rating.

Estimating revenues with these ratings

The rating for 'financial security' is being used by Sicirec to establish yield estimates as follows: We multiply the yield estimates for ideal circumstances by the rating for 'financial security'. More information on this subject can be found on the estimated revenues page.