About Us  |   Advertise  |   Contact Us  |   Terms & Conditions  |   RSS Feeds
 
Support our sponsors:
sharemarket

Online credit rating system offers early business warning

By Ray Lilley

Friday 6th October 2000

Text too small?
Creditors can now use an online tool to provide an early warning signal of a client's financial worthiness.

The internet-based automated corporate credit rating agency service, first conceived nine years ago by developer and taxation expert Patrick Caragata, offers detailed analysis of company performance and "over-the-horizon" projections of future performance for domestic and international companies.

The service, provided by McCallum Petterson, uses up to 65 key financial indicators to produce an automated credit ranking in just three minutes.

Selected users in the banking and venture capital sectors installed the software-based ratings service to screen investment prospects last December.

The system can also provide national and international clients with a life-cycle performance credit rating, a medium-term rating and a comprehensive 60-page run-down.

"This is not a copy of anything in the [international] marketplace. It's totally new," Dr Caragata said.

Some 10,000 companies were put through the system during beta testing and he said it reliably predicted company strength, health and financial stress across all 22 business sectors checked.

A client company accesses the rating system by the internet, puts in the numbers and receives back an initial three-page report within minutes.

The service will not be competing against international agencies such as Moody's and Standard & Poor's, which deal with only the top 1% of corporates.

"We're going for the mass market and we see a huge opportunity there," Dr Caragata said.

The system can give an early warning of financial distress up to five or even eight years ahead, depending on the quality of the financial data available.

McCallum Petterson monitors the financial performance of state-owned enterprises for the government's business watchdog agency, CCMAU.



Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.
Bookmark and Share   Printable version
Related News

SFO charges MightyRiverPower engineer with $2 mln fraud
NZ commodity prices fall for 6th month in August, as dairy prices slide
CERA to be rolled into DPMC ahead of slow wind-down for Canterbury rebuild
Huhtamaki buys carton manufacturer Interpac Packaging for 7 mln euros
Lyttelton offer amounts to premium up to 14%, recommended by independent adviser
Spark deregisters its stock in the US
NZ dollar holds steady as traders await US manufacturing data
While you were sleeping: Global manufacturing slows
NZ dollar rises as terms of trade hold at 40-year high
Gentrack secures delayed contract, shares rise to month high

 
Previous News
Bond
Bond
News Alerts
Breaking News 
After the Bell (daily) 
Gold News 

Unsubscribe/Update »

RSS feeds »
Twitter »
Facebook »

Most Commented On
  forex centre
cfd centre
options centre
NZX 15 Index
   





© Copyright 2014 MoneyOnline Ltd & Investment Research Group Ltd. All Rights Reserved.