By Ray Lilley
Friday 6th October 2000
|Text too small?|
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.
No comments yet
MARKET CLOSE: NZ shares rise, led by Arvida as upbeat earnings buoy investors
NZ dollar slips below 70 US cents
Plant & Food Research-Anagenix tie up on the verge of reaping benefits
Air New Zealand passenger numbers rise in April
Unite Union makes headway in talks with Restaurant Brands
SSC to probe Transport Ministry's treatment of whistleblowers
FMA licenses 201 firms under new securities law regime
NZ goods exports hit an April record as dairy prices continue to rise
Mixed blessings for Contact Energy from low southern hydro lakes
Arvida, on expansion drive, more than doubles annual profit