Credit index
A creditworthiness index is a yardstick for assessing the creditworthiness of a natural or legal person and corresponds to a capital market rating . The creditworthiness index serves as a forecast value for assessing the solvency of a person and is based on a large number of parameters (e.g. equity , liquidity , revenue , payment history ). This enables a contract partner to better assess the risk of payment or insolvency when concluding a contract.
As a rule, a small value means a good credit rating and a large value means a bad credit rating .
Example of a classification of the credit rating index
Creditreform creates a score of 100–600 points with the following meanings:
| Credit index | meaning | Probability of failure |
|---|---|---|
| 100-149 | excellent credit rating | 0.20% |
| 150-199 | very good credit | 0.35% |
| 200-249 | good credit | 0.84% |
| 250-299 | medium credit rating | 1.99% |
| 300-349 | poor credit rating | 6.97% |
| 350-499 | very poor credit rating | 15.05% |
| 500 | poor credit rating | |
| 600 | insufficient creditworthiness |
The creditworthiness of companies operating across borders is more difficult to assess, as they may be indebted to foreign banks. For this reason, a joint credit register was set up at the ECB between Germany , Belgium , France , Italy , Austria , Portugal and Spain . Corporate loans from 25,000 euros are listed there.
Individual evidence
- ↑ Creditreform credit rating index ( archived PDF )
- ↑ ECB sets up a transparent credit register for the banks , welt.de, March 11, 2003