Risk Appraisal Reports and ratings in depth
Use of counterparty risk appraisal reports and ratings are integral to the risk management, KYC, due diligence, compliance and decision-making processes of companies in the shipping industry looking to work with new partners, set up new lines of credit or explore new markets. 

Dynamar’s counterparty risk appraisal reports and ratings are rigorously compiled by our team of professional expert analysts. Drawing on four decades of experience and our extensive network, we provide our clients with critical information about legal entities working in and with the shipping industry to support their risk management, KYC verification, due diligence, compliance and decision-making processes.

What to expect in a report
A standard Risk Appraisal Report will contain data and analysis across the areas detailed below and conclude with an overall assessment of the target entity and risk rating based on Dynamar’s proprietary methodology:

• Corporate Status, typically including:
  • Confirmation of legal entity existence, status and name
  • Details of primary registration and place of domicile
  • Clarification of ownership, including ultimate beneficial ownership (UBO), shareholders, nominees, directors, key management and other controlling interests to support KYC verification
  • Details of group companies and affiliates
  • History from incorporation
  • Other geographic locations/ registrations/ business names
  • Staffing and headcount distribution

     

• Financial Information, typically including:
  • Latest available audited financial statements (in local currency – US dollar conversion will also be provided for convenience)
  • Relevant highlights from profit and loss statements, balance sheet and notes to the accounts
  • Highlights from interim results
  • Consolidated accounts of the parent company

     

• Business and Market Data
  • Clarification of main lines of business and activities, scale and scope, how and where they operate and actual/target segment/ clients
  • Analysis of current position in the market
  • Highlights of business model and operations, including in relation to group entities and affiliates
  • Recent external, internal or intra-group developments that may be relevant to risk profile
  • Fleet List (where applicable)
  • Available information concerning strategies/ future plans/ potential changes of direction or control
  • Other relevant information concerning context in which they are operating, for example, the prevailing market conditions and information such as charter rates, fixtures, developments, sales and purchases

     

• Sanctions and other Due Diligence checks
  • Negative and positive results from sanctions screening against official lists (indicating lists checked and dates). These typically extend to the target entity and other key parties – shareholders, directors, parent entity and UBOs
  • Additional checks to identify other potential deficiencies and areas of reputational risk, including adverse media and potential environmental, social and governance (‘ESG’) issues

     

• References
  • References are taken from a selection of relevant sources on performance and payment history and anything else that may be flagged by the source
  • The nature and breadth of Dynamar’s relationships and networks mean we are uniquely placed to source and triangulate references from a variety of sources including bunkers, ship owners, suppliers, commodity traders, container lessors, container manufacturers and others
  • Selection and scope of references vary depending on the particular case, but typically involve five references from at least two different categories, with the views of the reference sources triangulated against industry norms
  • Additional references can be provided to meet specific client requirements where required

How we work
We mine data from public registries, trade bodies and other public records in relevant jurisdictions.  We conduct detailed research and analysis, gather intelligence through our extensive global networks and sources, and we draw on our data and insights.  Analysis of audited financial statements is a crucial part of our assessment. Where this information is unavailable or inadequate, we draw insights from our networks and use our experience to make the best assessment we can, flagging uncertainties. 

Our overall assessment of the target entity is based on the results of this work, which we conduct in line with a strict methodology that we have built and refined over decades. Our report lays out the key data collected and verified, together with our analysis, overall assessment of the target entity and a Risk Rating assigned in line with our proprietary rating tool.

Our Assessment and Risk Rating
Our assessment of a target entity is based on appraisal of their corporate standing, associations and reputational risk exposure; their financial scale, health and performance; their track record, trading history and payment performance; and their general performance in context of market conditions.

Our risk appraisal and rating methodology has been built by Dynamar over decades, drawing on a vast wealth of experience, know-how and detailed analysis of thousands of companies working in and with the shipping industry. Our approach is designed to reflect both the individual characteristics of the shipping industry and its specific sub-sets, as well as the diversity of potential counterparties working within it, and their current circumstances. We take a highly data-driven approach. We combine this with deep professional expertise and experience. We also listen and respond to our clients’ needs to continuously strengthen and improve the relevance of our products to ensure they are fit for purpose and deliver the information our clients need in the right way at the right time. 

Pricing
Dynamar charges the below prices for ad-hoc orders for single reports. For other contracts special rates are available.