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Celtic third most stable football club in Europe & least likely to default

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Celtic have been rated as the third most stable club in European football, according to a report compiled by S&P Capital IQ.

According to the Credit Football League of 44 public and private European clubs, Ajax of Amsterdam came top of the league, with Arsenal second and THE Scottish champions securing a surprise third spot.

Director of credit market development at S&P Capital IQ, Pavle Sabic, said the surprisingly high-ranking for Celtic ‘reflected its dominance of the Scottish Premier League, which brings regular qualification for Champions League football and related revenues’.

Using their probability of default model [PD] – which incorporates equity prices to produce daily, short-term credit indicators – S&P Capital IQ build a picture of how the equity market perceives a club’s credit.

In Celtic’s case they have the lowest PD at 0.0052% – average of the 17 clubs was 2.5% – this suggests that the Parkhead side are the least likely of all the clubs in the Credit Football League to default.

S&P Capital IQ state: “Celtic’s low Market Signal PD could be a leading indicator of future financial strength taken from the equity market’s reaction to a game well-played. However, the club’s status as perennial title contenders, and its recent success in winning the Scottish Premier League for the last three seasons – thereby ensuring them access to the UEFA Champions League – has apparently led to a positive market sentiment, reflected in a low PD and therefore stronger short-term credit assessment.”

Look at S&P Capital IQ’s full report.

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About Author

scotzine

Andy Muirhead is the Editor of Scotzine and the Scottish Football fanzine FITBA. He is the Scottish Football columnist for The Morning Star and has written for a number of other publications including ESPN, Huffington Post UK, BT Life's a Pitch and has had his work featured in the Daily Record, The Scotsman and the Daily Mail.

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