Debtor Risk Assessments
Measures the probability of a company default within a 12 month period
It uses different statistical methods and combines hard facts (such as financial data and ratings) and soft facts (e.g. company management). Coface clients can access the DRA via CofaNet Essentials. Daily alerts of changes in the DRA of your portfolio allow you to make the right decisions and better manage your credit risk.
WHAT IS A SCORE?
The Debtor Risk Assessment is the likelihood over a period of 12 months, that a company will be able to honor its financial commitments such as counterparty obligations. It is calculated on the basis of both, typical financial attributes such as financial soundness, profitability, Coface payment experience and claims, solvency ratios as well as qualitative data as the company's business environment and management.
WHAT GOES INTO A DRA?
- Credit Risk Assessment score of the company based on a unique scale (from 0 to 10).
- History evolution of the scores during the last 5 years (if available).
- Probability of Default in % per risk class.
- 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
WHAT ARE THE ADVANTAGES OF THE DRA SCORE?
- Global - Access to a worldwide risk assessment with Monitoring.
- Easy to read - Get the DRA in a simple scale from 0 to 10.
- Expertise - Benefit from Coface's unique Credit Insurance expertise.