Talk:Rating Method Corporation Wikirating Index (CWI)

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Found at http://architectown.asia/1385-credit-rating-company.html (from 7 January 2011)

Credit rating company

A complete financial analysis to assess the creditworthiness of the company develops, usually of three main parts:

  • Analysis of its financial results;
  • Analysis of financial condition;
  • Analysis of business activity.

Creditworthiness of the borrower - is his ability to fully and timely pay its debts (principal and interest).

Here are the main criteria by which to assess the creditworthiness of the client:

  • Type of business;
  • The client's ability to earn money in its ongoing business to repay debt (financial capacity);
  • The size of this capital;
  • Availability of collateral;
  • Conditions under which the credit transaction is committed.

One of the main criteria of creditworthiness of the customer is his ability to earn money for debt repayment during the current activity. Clients' capital is not less important criterion in customer credit quality. It is important to these two aspects of its assessment:

  • Sufficiency, which is analyzed on the basis of legislative requirements to the minimum level of charter capital (equity) and the coefficients of financial leverage;
  • The degree of equity investments credited to the operation, which indicates the distribution of risk between the bank and the borrower.

The greater the proportion of equity investments, the more interest the borrower to closely monitor credit risk factors.

In international practice, assessment of banks creditworthiness of the customer based on the following key indicators:

  • Analysis of financial statements of the enterprise;
  • Liquidity of the company's property;
  • Indicators of capital turnover;
  • The share of raising funds in the balance sheet;
  • Profitability.
  • Assessing the creditworthiness of customers based on the techniques adopted by some commercial banks.


--Dorian (talk) 18:33, 21 September 2011 (CET)

Might be of Interest (from 15 February 2011)

  • IRB formula (Wikipedia article unfortunately only in german available)
  • ROIC Return on capital invested (ROIC) calculation
  • WACC Weighted average cost of capital (WACC) calculation


--Erwan (talk) 18:34, 21 September 2011 (CET)

Data

The Corporation Wikirating Index could use data from reliable sources, like Stock Exchanges. It would be more accurate than using data from lots of sources.
--EduardoAlba (talk) 18:44, 1 February 2012 (CET)