Credit rating model

Monkeys,

does anyone happen to have a credit rating model that i could get my hands on? I'd like to see how the big rating agencies actually rate companies and how IBs try to predict the ratings so i'd appreciate any hints on where I could find a working model. something like macabacus would be great but i could not find anything online. if you don't wanna share it publicly please just PM me. thx.

9 Comments
 

in4 1

Still not sure if I want to spend the next 30+ years grinding away in corporate finance and the WSO dream chase or look to have enough passive income to live simply and work minimally.
 

My internship just ended so I no longer have access, but Moody's made available to everyone who had the basic subscription their methodologies for rating companies within different industries (I think they had something like 50-60 different industries).

Here is a link to an old one for life insurers. The newly published one assign weighting to each factor.

http://www.moodys.com.br/brasil/pdf/2005800000427794.pdf

For S&P you had to pay extra for that (so I was not able to use S&P).

 

If you create a (free, Im pretty sure it is) account on Moodys.com you can browse their ratings methodologies documents which are sorted by industry/region.

Its basically a 20-75 page document that talks in depth about the industry and various factors impacting a firm's creditworthiness and position within that market. They then go on to outline their methodology for rating the firm. So they'll basically give you a pretty thorough outline of how they come up with their ratings. That should be just about all you need to create your own credit rating model based on Moody's methodology. Which, IMO, is a much better learning tool/experience as it will make you actually think about what you're doing and create a model based on the methodology to come up with a reasonable result. You can also compare your result with the current corporate rating Moody's prescribes to a given firm to see how close you are.

http://v3.moodys.com/Pages/rr003006001.aspx?bd=4294966628&rd=4294966628…

 

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