Asian Journal of Research in Business Economics and Management
Year : 2014, Volume : 4, Issue : 8
First page : ( 150) Last page : ( 159)
Online ISSN : 2249-7307.

Establishing the Credit Rating of the Non-financial Company

Bistriceanu Gabriel

Economist, National Bank of Romania - Bucharest, Monetary Policy Department

Online published on 6 August, 2014.

Abstract

The present paper develops a methodology for establishing the credit rating of a non-financial company using a panel data from the period 2011 - 2013 for the non-financial companies included in Dow Jones Industrial Average index. The methodology consists in determining the extremities of the intervals for each of the five quantitative indicators of the debtor non-financial company using quartiles analysis, establishing the qualitative indicators, setting the scores for each indicator and determining the credit rating category for the debtor non-financial company that apply for a loan from a bank. Finally, it is presented a classification of the non-financial companies included in Dow Jones Industrial Average index, for the period 2011 - 2013, based on the credit rating methodology obtained.

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Keywords

Credit rating, evaluation of the corporate debtor, Dow Jones Industrial Average, quartiles, panel data.

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