Credit Spreads Pro Update 2025

Min Read

The correct determination of interest rates and credit spreads is crucial for your work – whether in IFRS accounting, loan valuation, or the preparation of transfer pricing documentation. The Credit Spreads Pro product now offers you three new specialized tools that significantly simplify these tasks and save you valuable time. We developed the tools in collaboration with experts from auditing, financial administration, and fund management to provide you maximum practical relevance. Our focus was on enabling you to determine your data efficiently and precisely, without having to build complex models yourself.

#International Financial Reporting Standards (IFRS)

#Arm’s Length Principle

#Peer Group Analysis

#Discounted Cash Flow (DCF)

#Loan Valuation

#Credit Risk

Loan Valuation

Daniel Dinnebier

13.9.25

Director of Valuation and Transfer Pricing at smartZebra GmbH, specializing in valuation data, transfer pricing, SaaS, and startups.

‍3 tools suiting different requirements

1) Peer-group Credit Spreads

‍With this tool, you can determine credit spreads for individually compiled peer groups. You can choose from an extensive database with more than 2,000 rated companies and over 25,000 bonds per point in time. The selection can be made from over 130 subsectors, which enables a very precise peer group compilation. You can also view changes from previous points in time to analyze the development of credit risks.

‍2) Industry Credit Spreads

‍Determine credit spreads based on industry, rating, and loan term. With data on 20 sectors, all major currencies, and terms from 1 to 30 years, this tool offers you comprehensive flexibility. Country-specific base interest rates ensure regionally adapted data determination – ideal for international comparisons.

3) Rating and Credit Spreads‍

This tool closes a critical gap: It enables the determination of interest rates for companies without their own ratings. Based on common credit metrics, you can derive a rating for the borrowing company – essential for determining data for companies without ratings.

‍

Professional applications for your daily work

The new tools support you in numerous application areas:

IFRS Accounting: Precise interest rate determination for IFRS 3 (PPA), IFRS 9, IFRS 13, and IFRS 16 (Leasing)
Group Financing: Sound determination of interest rates for intra-group loans Transfer Pricing: Robust documentation for financial instruments
Loan Valuation: Reliable DCF valuations of loans

‍

Maximum Transparency & Documentation

All new tools offer you a high degree of transparency regarding the methods and data used. The full PDF documentation function supports you in creating court-proof evidence. Furthermore, our data is regularly updated: bond prices and treasury curves monthly, ratings quarterly, and stock prices even daily.

For further information and to request a trial access, please visit: Database for arm’s length interest rates: Reliable reference values for loans and transfer pricing.

Questions & Answers

How does smartZebra Credit Spreads Pro determine arm’s length interest rates?

smartZebra combines market data, credit spreads, ratings, and bond information to calculate date-specific, market-based interest rates for intercompany and external financing with full methodological transparency

Which financing and valuation use cases are supported?

Credit Spreads Pro supports transfer pricing, inter-company financing, loan valuation, purchase price allocations, and IFRS 3, IFRS 9, IFRS 13, and IFRS 16 valuations with audit-ready documentation.

Can I determine interest rates for companies without an external credit rating?

Yes. smartZebra derives a proxy rating using recognized financial ratios and qualitative credit assessment, enabling reliable credit spread and interest rate estimation for unrated companies.

How does Credit Spreads Pro determine interest rates for unrated companies?

Credit Spreads Pro derives synthetic (shadow) ratings from financial ratios such as leverage, liquidity, and interest coverage. These ratings are then used to identify comparable market credit spreads and estimate arm’s-length loan interest rates.

Which data sources are used for credit spread benchmarking?

Credit Spreads Pro uses a database of more than 100,000 corporate bonds together with government yield curves, issuer ratings, sector classifications, and historical market data to determine market-based credit spreads

Credit Spreads Pro Update 2025