Corporate credit rating rating table, how to view and manage the evaluation report
I don’t know if you guys are managing your corporate credit ratings well. If you are busy with business operations in the past, you may delay your corporate credit evaluation. However, you may be frustrated by the low corporate credit rating when you are trying to prepare for sudden funding or inter-company transactions. .
Today, we would like to learn about corporate credit ratings, management methods, and rating tables in this regard.
Corporate Credit Rating Table – Evaluation Form – Management Method
Corporate Credit Rating Table – Evaluation Form – Management Method
index
# What is a corporate credit rating table?
# How to manage ratings
# Corporate credit rating process
# Good article to read together
Corporate Credit Rating Table
‘Corporate credit rating evaluation’ is used as an important factor in various areas such as financing through the financial sector, attracting investment, business-to-company transactions, alliances, overseas-related business, and national policy projects.
Just as loan-related problems and benefits vary according to an individual’s credit rating, companies are also being used as important indicators in inter-company transactions. A low corporate credit rating means low debt repayment ability and high risk, making it difficult to raise funds.
I think that there is no one who is the CEO of a company who is unaware of the importance of financing, but it is recommended to pay attention to the company’s credit evaluation in advance because there are many cases where the opportunity is missed because funding is not available at an important moment when the company needs to grow.
Let’s take a closer look at the company credit rating table below.
We evaluate the creditworthiness of the company in consideration of the overall environment and classify the ratings from AAA to D. This rating is the result of grading bonds issued for the purpose of financing based on the analysis of the ability to repay the principal and interest.
Corporate Credit Rating Table-Evaluation Report
Corporate Credit Rating – Rating Table
In general, more than 80% of companies belong to BBB to BB ratings. In the case of grade C, the probability of default is high, so the probability of being disadvantaged in various areas increases.
What if the corporate credit rating is low? 기업신용평가 등급표
If the corporate credit rating is low, it is usually recommended to maintain a grade of C or higher, as there are many disadvantages in loans, transactions with affiliated partners, public institution bidding, and supplier selection. 좋은뉴스
How to manage ratings
The method for managing corporate credit ratings will be explained below.
1. Thorough management of accounting data such as financial statements
First of all, you need to create and manage clear data and leave a record. In particular, financial statements are used as management statistical data and are used as an important factor in judging a company’s rating by institutions and affect the company’s financial condition and overall reliability.
2. Cash flow
On the financial statements, good profit and cash flow are separate issues, and if the cash flow within the company is not smooth, the company’s financial condition will be negatively evaluated as unstable.
3. Sales and asset size
Large sales and assets mean that the industry is competitive and likely to generate stable profits.
4. Financial institution loans and delinquency
Just as personal loans are also affected by credit ratings, corporate and financial institutions’ loans and delinquency also affect rating ratings. Overdue tax and utility bills also have a major impact on your rating, so you must manage them thoroughly.
Corporate credit rating process
In order to be evaluated on a company’s credit rating, certain procedures must be followed.
1) Preparation of company status table.
2) Proceed with preliminary investigation.
3) Proceed with problem and direct investigation analysis.
4) Additional investigation in case of direct investigation discrepancy.
5) Writing opinions and determining ratings.
The grade is calculated through the above five procedures, and if there is information about a company’s bad credit, it will receive the lowest grade, C~D. Since stability of the financial structure, cash flow, and competitiveness in the market are key factors for rating improvement, we recommend that you achieve credit rating improvement through continuous planning and management.