Methodology

Basic elements of methodology of assignment of a credit rating of company RA RFCA are:


1. The branch analysis
2. The business analysis
3. The financial analysis
4. The management analysis





The credit rating of the company is a combination qualitative (risks of branch and business) and quantitative (financial risk) of analyses. Both analyses have equivalent degree of importance.


In the process of rating assignment RA RFCA uses from macro to micro approach. It means that first the branch in which the company operates is being evaluated, then business which the given company leads and only after that the analysis of financial indexations and company management is carried out. Thus, the accurate understanding of business risks of the company gives a platform for understanding of financial risks i.e. to understand height of some indicators, it is necessary to understand character of business of the company.