Survey Released by Creditsafe Details The Trump Effect on Company Credit Ratings
ALLENTOWN, Pa., December 15, 2016 /PRNewswire/ — Creditsafe, the global business intelligence experts, released intriguing data assessing the impact to company credit ratings across the fifty states since the 2016 Presidential Election.
In the 30 day period since the November 8th election, companies across the United States have experienced a .75% increase in their average overall credit ratings. In addition, companies in states that voted Republican saw an increase of more than 1%, while those in states voting Democratic experienced growth of only .44%.
“The fact companies across the US experienced an increase in their credit rating in the thirty days since the presidential election was a bit surprising, especially given the massive public outcry we’ve seen in places like Portland and New York City,” said Matthew Debbage, CEO of Creditsafe USA and Asia. “What’s even more amazing is the fact that companies in states that voted Republican experienced a significantly higher jump in their credit rating than those located in Democratic states. It was more than twice the increase”
Highlights of the Creditsafe Report include:
- States that voted Republican saw an average increase of 1.01%
- States that voted Democratic saw an average increase of 0.44%
- Vermont, New Hampshire and Connecticut were the only states where the average company credit rating dropped – these states all voted democratic
- Of the ten states with the largest increases in company credit ratings, eight of them voted Republican
- Of the ten states with the slowest growth in company credit ratings, seven of them voted Democratic
“It is interesting to see what has happened in the time since the election. We are fascinated to see how things progress after President-elect Trump is sworn into office. The challenge is that it is impossible to attribute any change in company credit ratings to a single event. There are many other factors both on the macro and micro levels that go into determining a company’s credit rating. These variables include: geography, industry, company size and, most importantly, how timely a company pays its suppliers,” explained Debbage. “From our perspective, an increase of nearly 1% in company credit ratings within the first thirty days of the election is a strong indicator the business community is optimistic about the future. It points to renewed confidence in our economy both now and over the long term.”
The data for The Trump Effect Report was mined from Creditsafe’s global database. Currently, it the largest wholly owned database of its kind in the world, as well as one of the most comprehensive. Each day over 200,000 users around the world leverage the company’s database to access strategic global business intelligence. Updated over a million times a day, Creditsafe’s databased is packed with information gathered from thousands of sources. In 99.9% of the cases, reports requested by customers are delivered instantly. Over forty percent of Creditsafe’s customers, leverage the company’s international reporting capabilities.
Creditsafe is the world’s most used supplier of company business intelligence with ten Creditsafe Group reports downloaded every second. Privately owned and independently minded, Creditsafe is looking to change the way business information is used by providing high quality data in an easy to use format that everyone in an organization can benefit from.
Founded in Norway in 1997, Creditsafe has offices in countries all over the world including: the UK, Germany, France, Sweden, Ireland, Italy, Belgium, the Netherlands and the United States. Globally, The Creditsafe Group employs over 1,000 people and has more than 80,000 subscription customers. Three years ago, The Creditsafe Group opened offices in the US under the name Creditsafe USA, Inc. Its U.S. operations are headquartered in Allentown, PA with another office in Phoenix, AZ. Nearly 5,000 companies in the U.S. use its credit reports, ranging from small businesses to large, global concerns like Staples, Ryder and Nestle. For more information about Creditsafe, please visit here.