Credit Rating Approach and Methodology
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Credit Rating Approach and Methodology
SCCB Comprehensive Report’s Credit Rating (Credit Assessment (CA) Rating) serves as an indicator to identify business sustainability risk or going-concern issue or probability of failure. The CA Rating is rated on a scale rating basis from 1 to 6 where 1 is the lowest risk and 6 is the highest risk. The CA Ratings are determined based on different weightage composition assigned on Financial and Non-Financial factors.
Credit Assessment (CA) Rating
The rating serves as a reference to assess the Subject Company’s credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) in our credit analysis are as follows:
- Financial Condition (40%)
- Credit History (20%)
- Ownership Background (20%)
- Payment Record (10%)
- Market Trend (5%)
- Operational Size (5%)