Rating methodology

Credit Statistical Model

ABOUT THE RATING MODEL

The model uses Statistic Sample comprising of data collected for a 3 years period

The data encompasses information of companies belonging to different industries, sectors and backgrounds

The model uses the logistic regression method to arrive at the variables with the highest predictable power

These Variables include Liquidity, Activity, Profitability and Capital Structure ratios.

Qualitative Assessment

ABOUT THE QUALITATIVE ASSESSMENT

The qualitative assessment is based on the below variables:

Derogatory Information: includes data obtained from courts, credit reports, banks and other agencies

Commercial Information: includes information from the client to evaluate Business Risk, Financial Risk and Management Risk. Macroeconomic Information: includes data obtained from expert sources in industry, government, academia, news reports, and financial journals to evaluate industry risk.

Ratings Result

ABOUT THE RATINGS RESULT

The model and qualitative assessment gives the following outcomes:

  • Rating Scale: The rating scale, running from a high of AA to a low of D, comprises 10 notches
  • Outlook: indicates the potential direction of a rated entity‚Äôs rating over the medium term, typically one to two years. Maybe defined as Positive, Negative or Stable.
  • Surveillance: indicates that a rating is under review for possible change in the short-term. The rating movement may be either positive or negative.