Category: Models
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Scope Ratings’ Investment Holding Company Rating Methodology
The Berlin rating agency Scope Ratings has published a new rating methodology specifically designed for investment holding companies. This methodology “Investment Holding Companies Rating Methodology – Corporates” has undergone a call-for-comments period and has now been finalized. It will be applied to all issuer and debt ratings of investment holding companies. However, the methodology is…
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Birth of the Morningstar Medalist Rating
Morningstar to Unite Two Forward-Looking Rating Systems into One.
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Understanding of “Diversity” in the “Scope Group”
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The IC Rating™ Model by Intellectual Capital Sweden
Intellectual Capital comprises all factors critical to an organization’s future success that are not shown in the traditional balance sheet. If you are looking for a rating approach to intellectual capital (IC) that fits that definition, this article is still the right read for you: The IC Rating™ model by Intellectual Capital Sweden Kristine Jacobsen,…
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New Rating Approaches for Crypto Exchanges and Crypto Custodians
It was not just Tesla’s spectacular entry into the world of bullish cryptocurrencies that attracted the attention of investors to this young asset class. Thousands of crypto currencies are now part of a universe that ranges from outright fraud to serous applications. Keeping an overview here is hardly possible for individual private investors in particular…
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Moody’s Heatmap Shows Heightened Environmental Credit Risk
Moody’s analysts have revised their environmental classification to reflect evolving environmental, social and governance standards, disclosure frameworks and market conventions among issuers and investors. Environmental risks can arise from regulatory and policy issues, hazards or a combination of both. The five environmental categories Moody’s considers most material to credit are carbon transition, physical climate risks,…
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No Movement! Data or Life!
For many people it has become a reality: life is completely monitored. Hence it is no longer a question of whether life is, can or should be observed by strangers. It’s all about how, according to which rules, and by whom, with what consequences. Anyone who wears a smartwatch at night transmits their data to…
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Risk Culture as a Means of Mitigating Conduct Risk
Thomas Kaiser and Tatjana Schulz write in their contribution to the book “Social Credit Rating” about the similarities with and differences to the China Social Credit System: Banks around the world have been exposed to numerous cases of misconduct at individual as well as on a systemic level, inflicting harm on single customers and the…
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SME Rating Dilemma
Small and medium-sized companies have difficulties communicating their creditworthiness credibly. Recognized credit rating agencies concentrate their services on companies that go through a committee-based rating process. The legal framework in Europe offers no alternative to this. Only those who meet all the requirements of the EU regulation on credit rating agencies can be recognized as…
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An Economic Approach to China’s Social Credit System
In an effort to increase trustworthiness across society, the Chinese government has been building its Social Credit System since 2014. This system targets all natural and legal persons in China and consists of four major elements: a central data platform, a rating system for commercial creditworthiness, a propaganda system for educative purposes and a publicly…
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Equity Rating Repair
Stock instruments issued or to be issued and / or traded on certain stock markets may be the subject of ratings. Stock ratings reflect the risks associated with the creditworthiness of the issuer and the stock market liquidity of an instrument. However, they do not address the risk of loss associated with price changes and…
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