ICAP Credit Rating: Companies’ Creditworthiness Evaluation
The Evaluation of Creditworthiness (ICAP Credit Rating) expresses an estimation of a company’s credit quality with respect to the probability of default and/or bankruptcy within a one – year time horizon. This estimation is based on an analysis of commercial, financial and trading data derived from public sources and interviews with the rated companies
It is presented in a ten- grade scale (AA, A, BB, B, C, D, E, F, G & H) according to the following pattern: the closest the Creditworthiness of the enterprise is to grades (B → AA) the lower the probability of default and/or bankruptcy.
ICAP Credit Rating meets the requirements of the Regulation 1060/2009 of the European Parliament and of the Council on Credit Rating Agencies.
According to this, ICAP is very rigorous to ensure that the applied processing procedures, methodologies and policies are in compliance with the regulatory framework and the assignment of credit ratings is guided by the principles of integrity, reliability, independence and transparency.
Using 9 separate credit models, ICAP incorporates those regulations recommended by the E.U. and the Basel Committee, (assessment of the economic cycle, weighted estimation of the probability of default, based on historical events etc.) for defining a company’s characteristics, its classification in Credit Rating Zones and the estimation of its Probability of Default- PD.
Macroeconomic Models Review (January 2015)
Downloadable informative files ( in *.pdf format)