When you look at company information reports, the first thing you notice is credit score.
In the case of Creditsafe (CS) company information reports, the importance of visuals makes it possible to judge risks intuitively. Green is acceptable for credit, red is not. In addition, it appears that it is easy to judge the point which adopts the rating of 100-point perfect score system familiar to Japanese.
However, it should be noted that the criteria for evaluation are significantly different from Japanese scores.
The significant difference is that the rating of the CS is an objective assessment based on the probability of bankruptcy, while the rating of the Japanese credit reporting agency is a subjective assessment that is mainly evaluated by a personal reporter. The investigators come with the Japanese score which is said to be concentrated from 45 to 55. If a subject with a high rating goes bankrupt in a certain period, the reporter who scored the high rating will be penalized.
In addition, it is pointed out that there are also negative effects that the reporter is also working as a salesperson. It is for an act of intentionally raising the evaluation of the subject in which it operates to have many tickets bought.
On the other hand, CS ratings are based on bankruptcy probability and there is no arbitrariness. It can be used safely as an objective index.
The CS rating is an indicator that predicts the probability of the company going bankrupt within the next 12 months. 100 is the highest credit rating while 1 is the lowest credit rating.
For example, UK ratings are as follows.