A credit rating is an assessment of a company’s creditworthiness – a figure that is calculated according to a particular mathematical algorithm. The company’s credit rating predicts how high or low is the risk that the company will miss the payment of any of their invoices in the next twelve months.
The company’s credit history may include a large amount of information that may impede the decision-making process – reports may be more than twenty page long. Therefore, a company’s credit rating is a useful tool in decision-making.
The company’s credit rating includes all analysis of the credit and business-related information of the company concerned, which is stored in the KIB database. It is intended to shorten the relevant information by aggregating it with a specific figure, which is displayed both qualitatively and quantitatively. The company’s credit rating is a quantitative indicator, ranging from zero to 130, where a higher figure is attributable to a lower level of risk.