Online credit rating system offers early business warning
By Ray Lilley
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:
Zespri urges kiwifruit growers against PSA class action
Vodafone NZ sinks into the red as finance, operating costs mount
NZ utility companies are the worst payers in the country, D&B says
Australia's Quattro looks to raise A$305 million listing NZ property portfolio on ASX
NZ commodity prices fall for 7th month in Sept, ANZ says
Fed Farmers warns dairy farmers face 'austerity' this season
Finzsoft shares soar to record after signalling fourfold earnings boost
Asking prices for NZ properties plateau nationwide, Trade Me data says
Goodman Fielder flags early redemption for $250 mln of NZ bonds
Vista Group International signs major Chinese supply deal