Credit Rating - MicroRate

Details

The credit rating report analyzes the following aspects:

CREDIT RISK

• Portfolio Composition

• Credit Methodology

• Write-Offs and Provisions

• Risky Operations

• Collection Management

OPERATIONAL RISK

• Operational Risk Management

• Internal Control

• Management Information System

• Compliance Management

STRATEGIC RISK

• Corporate Governance

• Strategic Guidelines

• Positioning

FINANCIAL RISK

• Profitability

• Liquidity

• Solvency

• Indebtedness and Fund Diversification

• Market Risk

The Credit Rating grade definition is as follows

A+ A A-

Those financial institutions that show high capacity to pay their obligations, according to the agreed terms and conditions. Minimal sensitivity to deterioration in the face of possible changes in the sector, context or in the institution itself.

B+ B B−

Those financial institutions that show good capacity to pay their obligations, according to the agreed terms and conditions. Low sensitivity to deterioration in the face of possible changes in the sector, context or in the institution itself.

C+ C C−

Those financial institutions that show sufficient capacity to pay their obligations, according to the agreed terms and conditions. Moderate sensitivity to deterioration in the face of possible changes in the sector, context or in the institution itself.

D+ D D−

Those financial institutions that show insufficient capacity to pay their obligations. High sensitivity to deterioration in the face of possible changes in the sector, context or in the institution itself. High risk of default on obligations.

E

Those financial institutions with insufficient information to be rated and/or inability to pay their obligations.

Positive or negative grading reflects the strength of the rating assigned.

Benefits

Credit rating allows your entity to:

Comply with regulatory standards
Obtain a risk matrix with sub-ratings allowing a focus on areas with opportunities for improvement
Systematize and standardize your financial and operational information objectively and independently
Promote continuous and timely monitoring of your alignment with practices and standards, as well as with banking supervisor regulation
Provide feedback to senior management and board of directors
Expand local and international financing options
Promote your entity's transparency and international visibility