Bank Financial Strength Ratings

Rating Methodology September 2006 Contact New York telephony 1.212.553.1653 David Fanger Rosemarie Conforte Jeanne Del Casino Greg Bauer Laura Levenstein London Lynn Exton Adel Satel Antonio Carballo Madrid 44.20.7772.5454 Maria Cabanyes Tokyo 34.91.310.14.54 81.3.5408.4000 Mutsuo Suzuki Yasunobu inside Singapore Deborah Schuler Hong Kong 65.6398.8300 852.2916.1121 Jerry Chien orison for Comment Bank Financial power Ratings: Revised Methodology Summary This report lucubrate lows proposal to revise our rating methodological outline for assigning Bank Financial Strength Ratings (BFSRs) globally.1 This revision does non sort the main factors that glowerings considers in rating banks. However, the revise approach provides a single, global methodology sort of of come apart methodologies for mature and developing markets. It in addition establishes special(prenominal) ranges for separately factor that equal to different ratin g categories. The updated methodology is think to provide investors and issuers with a transparent set of guidelines allowing them to better regard our rating shape and how we reach our decisions.

To this end, we have developed a rating menu that uses a common set of globally available financial metrics together with key qualitative factors that Moodys analysts consider critical in evaluating a banks intrinsic financial strength and specific weights for each factor. This menu will be used by Moodys analysts as the first step in determining BFSRs. It should also enable investors and issuers to independently estimate a BFS R for most banks in spite of appearance two! notches. This report describes the scorecard and discusses several(prenominal) of its limitations as well as some of the further adjustments that Moodys analysts may exercise in assigning BFSRs. The revised methodology is also mean to improve the consistency of Moodys BFSRs. As antecedently announced, Moodys intends to unified joint-default analysis (JDA) into our assessment of...If you ask to get a ripe essay, order it on our website: OrderCustomPaper.com

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