Creditreform Rating has set the initial unsolicited corporate issuer rating of Compagnie Financière Richemont SA at A with a stable outlook. This unsolicited corporate issuer rating confirms that Richemont possess a high level of creditworthiness, which represents a low risk of default. Our rating is based on Richemont's leading position in the global luxury market and its strong, high-value brand portfolio. Even if the group posted a comparatively subdued annual result for the last financial year, the results of our key financial figures analysis have indicated a very stable and solid level over the past few years. Despite a noticeable slump in business in the first half of the current financial year 2021, the company's solid qualitative and quantitative fundamentals represent a good starting point for overcoming the challenges and uncertainties that are currently emerging from the COVID-19 pandemic for the luxury goods industry. Nevertheless, the rating level includes the limited headroom based on the financial figures of the 2020 business year. This is in light of Richemont's weaker credit metrics that we expect for the financial year 2021. We assume that the global pandemic situation will recover slowly in 2021 and that the most important markets for the luxury industry will return to a growth trend. In particular the Chinese market, which was affected first by the pandemic, is already showing satisfactory developments again.