Practical examples of Rating models

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Practical examples of Rating models

• Kerst Business Transformation Rating Advisory
• Sedanstr. 27
• D-97082 Würzburg
• Germany

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Contents

• Companies and focuses
• Standard Poors
• Rating Services AG and Unternehmens Rating
  Agentur URA
• Rating models and approaches
• Rating outcomes and comparability
• Discussion and opinions

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Companies and focuses
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Rating model Standard Poors

• Business Profile/ Risk
• Industry Characteristics
• Competitive Position
• (e.g.) Marketing
• (e.g.) Technology
• (e.g.) Efficiency
• ...

• Financial Profile/ Risk
• Financial Characteristics
• Financial Policy
• Profitability
• Capital Structure
• Cash Flow Protection
• Financial Flexibility

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Rating process Standard Poors

• Request rating
• Assign analytical team and conduct basic research
• Meet client
• Rating comittee meeting
• Appeals process
• Rating
• Surveillance
• Duration longer period

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Rating outcomes Standard Poors

• Rating is a current opinion
• Rating should never be a snapshot of present
  situation
• There is no formula for combining scores to
  arrive at a rating conclusion
• The industry is setting the upper limit on the
  rating to which any participant in the industry
  can aspire
• International rating notation
• Default and transition study

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Rating model URA

• Management and Organization
• Human Ressource Management
• Finance
• Products and Markets
• Production and Electronic Data Technology
• Location and Ecology

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Rating process URA

• Request rating
• Assign analytical team (accountant/ tax
  consultant and business analyst)
• Meet client
• Rating
• Rating comittee meeting
• Appeals process
• Presentation

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Rating outcomes URA

• Notation from
• 1 ausgezeichnet 6 nicht ausreichend
• Source URA
• on request a risk profile

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Rating Model Rating Services AG

• Management
• Organization
• Finance
• Human Ressource Management
• Markets and Produkts

• Production process
• Electronic Data Technology
• Location
• Ecology

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Rating process Rating Services AG

• Request rating
• Assign analytical team and conduct basic research
• Meet client
• Rating
• Rating comittee meeting
• Appeals process
• Presentation and publication on demand
• Re-Rating

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Rating outcomes Rating Services AG

• Rating report
• Rating profile
• Risk profile
• International notation

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Rating outcomes Rating Services AG
Some ratings
Source Rating Services AG
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Thank you !

• Kerst Business Transformation Rating Advisory
• Sedanstr. 27
• D-97082 Würzburg
• Germany
• hannes.kerst_at_gmx.de