New rating model for Limited Companies | Creditsafe
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New rating model for Limited Companies

24 june 2019

As the world's most used provider of credit and business information, we continuously review and develop our methods for predicting risk. During November, we will therefor launch a new and improved score model for limited companies. In addition, we are also adding two exciting news - risk percent and rating comments.

New ratingmodel

Accurate credit decision is based on qualitative data. Why is a new model needed?

The market is changing and so is our way of classifying risk. Different types of companies differ more today compared to ten years ago, both in terms of available information and risk exposure. Therefore, there is a need of continuously review our score models and re-evaluate the way we predict risk.

The new rating will be based on more models than before and will thus be more accurate in the various segments. We will go from three to six models for limited companies based on available data and size. Hundreds of variables have been complied and we have looked at the weighting of each variable along with the impact, to give you a even higher precision in your credit assessment.

Good to know about the new rating:

The rating description will show risk instead of creditworthiness

We will use the same rating scale (0-100) and interval

The rating will still predict the risk of insolvency within 12 months

We will add risk (%) and also rating comments to highlight important factors that could impact the rating

Same rating intervals, but focus on risk level:

Rating Intervals

When will more information come out?

At the end of August / September, you will receive more information adapted to the services that you are using. If you have implement the rating into your own systems, it will continue to be delivered in the same way but together with risk (%) and rating comments. Of course, we are also here to answer questions and provide guidance.

For questions, please contact us at 031-725 50 50 or [email protected].