Legality rating: what it is and how it is obtained

Requirements and advantages of the instrument that recognizes rewards for those who operate according to the principles of legality

The legality rating is a synthetic indicator introduced in 2012 for Italian companies, aimed at the promotion and introduction of principles of ethical behavior in the corporate environment, through the assignment of a "recognition" - measured in "stars" - indicative of the respect for legality by the companies that have requested it and, of the degree of attention placed in the correct management of your business. The regulation links the attribution of the rating to advantages in the granting of public financing and concessions for access to bank credit.

Rating attribution process

The legality rating is assigned by the Competition and Market Guarantor Authority AGCM. Companies (both individual and corporate) that satisfy the following requirements can request the attribution of the rating:

• operational headquarters in Italy;
• minimum turnover of two million euros in the financial year closed in the year preceding that of the application;
• registration in the company register for at least two years as of the date of the application;
• compliance with the other substantial requirements required by the Regulation.

This recognition takes the form of a score between a minimum of one and a maximum of three "stars".

The requesting company obtains the basic score ★, if it complies with all the requirements set out in article 2 of the Implementing Regulation on Legality Rating. The basic score may be increased by a "+" for each additional requirement that the company respects among those provided for in the art. 3 of the Regulation. Achieving three "+" results in the attribution of an additional star, up to a maximum score of ★★★.

The legality rating lasts two years from issuance and is renewable upon request.

The advantages of the legality rating

The Legality Rating allows companies to have numerous competitive advantages.

The attribution of the Rating increases the power of the company image: a company that has the Rating improves its clarity and transparency in operating and is recognized by other players on the market as a healthy and virtuous subject. Consequently, the attribution of the Rating favors opportunities to do business and clearly distinguish oneself from one's competitors.

Public administrations, when preparing provisions for granting loans to businesses, take into account the legality rating attributed to them, according to the methods established in the decree itself, providing at least one of the following reward systems for businesses in possession of the rating:

• preference in the ranking;
• attribution of additional points;
• reserve share of the allocated financial resources.

The reward system or systems are chosen in consideration of the nature, extent and purpose of the financing, as well as the recipients and the procedure envisaged for disbursement and can be graduated based on the score achieved when assigning the rating.

The bankstake into account the presence of the legality rating attributed to the company in the preliminary investigation process for the purposes of reducing the times and costs for granting loans.

Furthermore, the banks consider the legality rating among the variables used for the evaluation of the company's access to credit and take it into account in determining the economic conditions of disbursement, where they find its relevance with respect to the performance of the credit relationship.