The base level of financial health of a company is established at initiation. This is derived from our outlook on key drivers of company performance combined with a simulation of company performance in the future under various operating scenarios. Periodically, as financial results are released by companies, we assess the impact of these results on risk and adjust RTI appropriately.
RAGE Credit Rating Report
The RAGE Credit Rating Report provides independent and objective, forward looking ratings, probability of default [PD], estimates of loss given default [LGD] with accompanying narratives, based on a company’s business drivers and operating environment. This rating is based on fundamental analysis of the company and the environment it operates in (sector, country, etc)
To the base level assessment and continuous monitoring we also bring industry specific statistical bankruptcy prediction models that have significant predictive power up to 8 quarters prior to the default event.
RAGE Credit Model
The Credit Rating report is derived from RAGE Credit Models. The models contain fundamental data, credit ratings summary, trends, quarterly variances, operating and segment (geographic and business) data, Debt and covenant information, etc. We source our own data using our patented extraction technology ensuring very timely, high quality, and rich data. The models are industry specific and complete with up to 20 Quarters of data.
RAGE Segment Analysis
Segment analysis provides an aggregated view of credit risk associated with a particular portfolio segment (industry, geographic). The analysis includes a review of the aggregated credit risk including ratings distribution, exposure by rating; benchmarks on key metrics such as liquidity, earnings power, operating efficiencies, leverage and Z score summaries.