This is machine translation

Translated by Microsoft
Mouse over text to see original. Click the button below to return to the English verison of the page.

Determine Credit Quality Thresholds

Convert transition probabilities to credit quality thresholds and vice versa

An equivalent way to represent transition probabilities is by transforming them into credit quality thresholds. These are critical values of a standard normal distribution that yield the same transition probabilities. Financial Toolbox™ supports the transformation between transition probabilities and credit quality thresholds.


transprobfromthresholds Convert from credit quality thresholds to transition probabilities
transprobtothresholds Convert from transition probabilities to credit quality thresholds


Compute Credit Quality Thresholds

To compute credit quality thresholds, transition probabilities are required as input.

Visualize Credit Quality Thresholds

You can graphically represent the relationship between credit quality thresholds and transition probabilities.

Was this topic helpful?