Credit & ESG Rating
Whether one is looking for a credit score, solvency index, probability of default or factual rating, all obtainable!
While ESG ratings are still in their early stages globally, 3ACredit is one of the pioneering companies to offer them for any given business, and the only provider in China.
Credit Rating
Whether one is looking for a simple Credit Score, a Solvency Index, the Possibility of Default or a real Quantitative Rating, these are all available at 3ACredit. Contact us when you want to know which of these might be of assistance to you!
ESG Rating
Globally ESG ratings still are at their infancy stage. 3ACredit is one of the first companies which have managed to create a solid ESG Rating and is able to provide that for any given company. Currently the only providing company in China.
How does Credit Rating work at 3ACredit?
At 3ACredit, we begin by preparing desensitized financial data from Chinese private companies. This data is converted into the XBRL format and analyzed for distribution to ensure it’s structured properly.
We focus on SMEs with assets and sales of at least CNY 5 million for our credit ratings, ensuring we assess companies that meet specific financial criteria.
Instead of relying on empirical default data, we develop a default event model based on our extensive market experience. This model identifies key indicators that predict potential defaults.
We analyze data by region, time, and industry to define key variables that influence predictability and establish what constitutes a default.
We assess the stability, selectivity, and predictability of various variables using univariate analysis. This helps ensure that each variable effectively contributes to our scoring process.
We then create a clear rating model, establishing defined intervals and categories, and validating its predictive accuracy.
Our refined scoring model enhances the existing rating system, making it a powerful tool for assessing creditworthiness and predicting defaults.
Finally, we rigorously test the model through out-of-sample validation. This includes analyzing data plausibility, industry distributions, and default forecasting accuracy to ensure the model’s reliability.