Methodologies
Our Sovereign and Corporate credit ratings methodologies are patent pending tools, however following measures are indicative and partial lists of dimensions we focus on whilst analysing creditworthiness and related components. We aim to balance between quantitative and qualitative analyses and leave no gap for any bias. The weights and relationships if any between indicators are derived statistically within a sample while generating quantitative rating on 1 to 10 scale.
Partial Indicative Lists of Dimensions considered for
Corporate Credit Rating
- Efficiency
- Effectiveness
- Liquidity
- Gearing
- Cash flows
- Earnings
- Volatility
- Management
- ESG Indicators
- Industry Pressure
- Profitability
- Operating Margin
- Debt
- Business Profile
- Leverage
- Financial Strategy and More...
Sovereigns Credit Rating
- Markets
- Prices
- Budget
- Debt
- Finances
- Tax System
- Per Capita Income
- Jobs
- Unemployment
- Gross Domestic Production
- Defence Expenditure and Capabilities
- Exchange Rate
- Currency Strength
- Governance
- Transparency
- Bi-lateral Relations
- Political Stability
- Business Environment and More...
Our ratings methodology describes Strategic Rating’s new perspective to assess creditworthiness of entities in the global markets. This section displays the general idea of how we approach and assess credit risk and enable focusing on interests of all market stakeholders. The above list is only indicative and according to each industry specifications that industry can have their specific measures and benchmarks to be analysed as well.
