Customers’ Financial Strength Assessment Service
Addressing to the creditors and lenders, this service provides a statistical estimation of the financial strength of a given corporation of their concern.
It is useful as a ready-made tool of objective credit assessment on the commercially and financially concerned corporations. A typical application of the service, among others, is to the credit management rules that incorporate it, for instance, as a trigger, if the assessment turns out to be at a certain level or lower, to require taking deposit or collateral.
The result of assessment is graded in nine ratings and shown by the number from 10 to 2. It is a product of the “JCR Small and Medium Sized Enterprise Credit Risk Estimation Model (JCREST)”, in which JCREST calculates for a given corporation the statistical probability of default (PD) from 1 to 3 years ahead of a given time. JCR determines the rating based on the PDs therewith produced, but not any qualitative assessment such as possible credit enhancement from the parent company, etc.
*** This service is provided only in Japan.