Category: Methodologies
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Morningstar Unveils Enhanced Global Methodology for Prestigious Investing Excellence Awards
Morningstar, Inc., a leading provider of independent investment insights, has announced a comprehensive update to its methodology for the prestigious Morningstar Awards for Investing Excellence. The new methodology, set to be implemented in 24 markets globally, reflects Morningstar’s commitment to recognizing outstanding funds and asset managers that not only deliver strong risk-adjusted returns but also…
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Ordinary Support and Extraordinary Support: Understanding the Distinction
In the realm of financial analysis and risk assessment, the support extended to Government-Related Issuers (GRIs) plays a pivotal role in determining their stability and creditworthiness. This support can be categorized into two main types: ordinary support and extraordinary support. While both forms of support are crucial considerations in evaluating the overall health of a…
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Scope Ratings’ appendage methodology
With 16 extensive appendices to only 7 pages of methodology, the new methodology from Scope Ratings sets a new record for imbalance. Scope has updated its covered bond rating methodology, which will now be applied to all covered bond ratings. The update aims to provide further clarity and refinement to Scope’s analytical approach without impacting…
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Scope Ratings’ Investment Holding Company Rating Methodology
The Berlin rating agency Scope Ratings has published a new rating methodology specifically designed for investment holding companies. This methodology “Investment Holding Companies Rating Methodology – Corporates” has undergone a call-for-comments period and has now been finalized. It will be applied to all issuer and debt ratings of investment holding companies. However, the methodology is…
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Birth of the Morningstar Medalist Rating
Morningstar to Unite Two Forward-Looking Rating Systems into One.
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ESG Ratings: The Good, the Bad, the Ugly
Headline ratings no longer enough Prof. Dr. Nils Stieglitz gave a welcome address to the conference “ESG Ratings: The Good, the Bad, the Ugly” of the Corporate Governance Institute (Prof. Dr. Julia Redenius-Hövermann) at the Frankfurt School of Finance & Management, followed by Prof. Dr. Zacharias Sautner, showing data of Hartzmark and Sussman, 2019, proving…
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Goodwill Message to the Stakeholder Workshop on Operational Sustainability & Circular Economy
A Workshop Presented by the Institute of Directors Nigeria and AfriKairos
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First Crypto Fund Ratings in Germany
TELOS GmbH, known for their fund ratings in the institutional sector, and DLC Distributed Ledger Consulting GmbH announce a strategic cooperation in the field of crypto fund ratings. The aim of the cooperation is to connect two worlds – that of classic asset management and that of digital asset management. On the one hand, the…
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Is The Notion of Efficiency Alien to Charity?
there are minimum requirements for recognized non-profit organizations. But can their efficiency and effectiveness also be rated? At effektiv-spenden.org Sebastian Schwiecker, founder and managing director of UES – Gemeinnützige Unternehmergesellschaft (haftungsbeschränkt) für effektives Spenden, tries to give very specific answers to the question of how you can achieve the greatest possible effect with your donation,…
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How A Credit Rating Agency Should Determine the Weights of ESG Criteria
Moody’s “General Principles for Assessing Environmental, Social and Governance Risks” relate to issues which may have greater downside risk than upside potential for rated issuers. The introduction of these principles is perceived by many issuers as an additional pressure that weighs on them in order to prove their sustainable management. This pressure is unsettling, especially…
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Leasing Company Rating
Leasing companies have been analyzed by leading US credit rating agencies for decades. In addition to these rating agencies, there are other rating approaches for leasing companies. Three of these are briefly presented here. The first relates to a joint initiative by Landesbanken and other credit institutions to operate bank-internal system for rating leasing companies.…
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Rating Airports
Credit ratings play an important role for airports and their operators, since in most cases the capital requirements for airports can only be met when bonds are issued. Ratings are used to assess airport liabilities both when issuing bonds and when trading bonds. The rating system applies both to independent airports and to companies with…
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Patent Rating
Innovation rating and patent rating have different tasks, but are interrelated. An innovation rating is used to assess a company’s ability to compete with other (innovative) companies through innovation. The patent rating, on the other hand, is a future-oriented judgment on the relative intrinsic value of a patent and requires a system of classification. The…
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Innovation Rating
The basic idea was already known to the Romans: the word “innovation” is developed from the Latin verb innovare (renew). As a noun, it means “newness” or “renewal”. The term is used in everyday language in the sense of “new ideas and inventions” and for their basic relationships. An innovation rating traditionally includes the expectation…
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Equity Rating Repair
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in Criteria, Definitions, Methodologies, Models, Performance, Read, Regulations, Repairs, Scales, Symbols, SystemsStock instruments issued or to be issued and / or traded on certain stock markets may be the subject of ratings. Stock ratings reflect the risks associated with the creditworthiness of the issuer and the stock market liquidity of an instrument. However, they do not address the risk of loss associated with price changes and…
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Rating Assets
Is a musical work a rateable asset? Or is just a metal like gold a rateable asset? RATING EVIDENCE and RATING©REPAIR relate to the evidence and to the repair of ratings for specific assets or counterparties. In the following the focus will be on the definition of assets. Since the word “asset” plays an important…
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KYC Risk Rating
Under strict Anti-Money Laundering (AML) regulations put in place by national governments, the European Union (EU), the Financial Action Task Force (FATF), and the United Nations (UN), all financial institutions and many types of companies are required to closely monitor their clients’ accounts and report any suspicious activity. These legal requirements often take the form…
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KYC Risk Rating
Under strict Anti-Money Laundering (AML) regulations put in place by national governments, the European Union (EU), the Financial Action Task Force (FATF), and the United Nations (UN), all financial institutions and many types of companies are required to closely monitor their clients’ accounts and report any suspicious activity. These legal requirements often take the form…
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Recovery Rating
Credit risk is a function of an issuer’s probability of default and the loss given default on a specific debt instrument. For noninvestment grade corporate issuers, some rating agencies assign separate ratings for these two components of credit risk. An issuer rating is a rating agency’s assessment of the probability that an issuer will default…
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Determining Recovery Ratings
Credit risk is a function of an issuer’s probability of default and the loss given default on a specific debt instrument. For noninvestment grade corporate issuers, some rating agencies assign separate ratings for these two components of credit risk. An issuer rating is a rating agency’s assessment of the probability that an issuer will default…