Credora is an end-to-end lending solution facilitating credit by validating real-time risk metrics in a zero-knowledge environment. Credit information help issuers increase trust with investors. Credora explains their Credit Evaluation Methodology best themselves:
The methodology scores all borrowers out of a total score of 1000. Credit information are expressed as letter grades from AA to D, indicating the relative level of credit risk. A Borrow Capacity metric is also calculated, using the credit information and leverage as primary inputs.
Credit Rating Scale:
Credora conducts these evaluations based on information provided by the firms seeking the credit rating. The process requires the submission of KYC and financial statements on the Credora platform and follow-up responses from the borrower management team.
The methodology currently distributes the total points between three main categories:
- 1.Operations : Operations evaluates the firm from a due diligence perspective and includes factors such as compliance risk, management, and borrow history
- 2.Performance : Performance analyzes the firm from a liquidity and solvency perspective while evaluating historical returns and drawdowns
- 3.Risk Monitoring : Risk Monitoring awards points for the level of risk monitored assets on the Credora platform and the Portfolio Equity and Leverage of the firm
The Credit Evaluation Methodology is updated from time to time to align with new market developments and incorporate participant feedback.