Within a bank, the grading of debtors according to their creditworthiness and borrowing capacity. – The public rating of the creditworthiness of an economic entity (government, company) by independent agencies. The result of the rating are censoring scales. The lower the rating, the higher the interest rates demanded by the market for issues by the corresponding economic entity. Debtors without a rating are avoided by investors. – In many cases, ratings are interpreted as yield forecasts, but this is not at all correct. – See credit analysis, central bank, credit rating class, credit default swap, debtor management, downrating, development procedure, iterative, company short profile, internal ratings-based approach, investment grade, calibration, credit risk, Models Task Force, Plutoed, profiling, ranking, rating agency, risk profile, run rate, shadow rating, discriminatory power, overconfidence. – Cf. Deutsche Bundesbank Monthly Report of January 2003, pp. 45 ff, Monthly Report of the Deutsche Bundesbank of September 2003, p. 61 ff. (Methodological), Monthly Report of the Deutsche Bundesbank of September 2004, p. 59 ff. (p. 70 Explanation of the Discriminant Analysis and Expert System Procedures in Central Bank Rating), BaFin Annual Report 2004, p. 65 (Code of Conduct, Fundamentals for Rating Agencies), ECB Monthly Report of September 2005, p. 35 f. (yield spreads of government bonds due to differences in credit ratings), Deutsche Bundesbank Monthly Report of January 2009, p. 65 (methodology of rating models).
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
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