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Debtor Risk Assessments

Measures the probability of a company default within a 12 month period

The Coface Debtor Risk Assessment measures the probability that a company will default over a 12 month period, helping you determine whether a customer is acceptable or at high risk. The DRA uses a scale from 0 to 10, with each of the 10 grades associated with a probability of default. Each score corresponds to a category of risk. The higher the score, the lower is the risk of default. Daily alerts of changes in the DRA of your portfolio allows you to make the right decisions and better manage your credit risk.
 
DRA Scale
 

WHAT GOES INTO A DRA?

Additional inputs include:

  • Financial Lines Adjustments - Taking into account the company's ultimate parent
  • Trend Behavior - Based on the history of a company's DRA
  • Advanced Coface Indicators - Adjusting for external shocks to the economy according to a company's sector, size and geographic location
  • Coface Senior Analysts - Who review company's DRAs

Coface uses a number of data elements to assess a company's short-term probability of default. The core of the assessment is comprised of data points from the following categories:

  • Financial Ratings - Based on a company's consolidated financial figures
  • Payment Incident Ratings - Derived from statistical scores
  • Company Identity Data - Including company age, location, line of business, employees, court rulings, etc.

FOUR GOOD REASONS TO CHOOSE DEBTOR RISK ASSESSMENTS

  • Segment your portfolio so you can focus on your most critical risks
  • Global database of more than 145 million companies
  • Same data analysis methodology used around the world
  • Monitoring service alerts you to changes in the risk profile of customers
 
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