Our in-house Business Credit Risk Assessment (“BCRA”) scoring model is a balanced set of algorithms, which utilises technically and empirically derived risk models to determine the financial strength and repayment capacity of the Subject Company.

The BCRA model is composed of the following:

Financial risk assessment (“FRA”). The scores are forward-looking and reflect our expectation of financial stress the Subject Company may encounter over the next two years. Historical financial results are used to measure the financial strength of the entity and put in picture the trends and patterns of its performance. We take into consideration both the financials of the Subject Company and its Holding Company (if available). The result of the assessment demonstrates the Subject Company’s ability in generating sufficient positive cash flow and profits so as to be financially sustainable over a period of time.

Company risk assessment (“CRA”). The company-specific risk profile is viewed within the context of management, organisational and shareholding structure, operational type and size, detrimental records and the contactability of the Subject Company. These risk factors are believed to present a significant aspect in effectively uncovering risks which may not be clearly spelled out in the assessment of financial-related risks.