Credit Rating

On this page…
Introduction Example

Introduction

A credit rating evaluates a potential borrower's ability to repay debt. The credit rating demo describes one approach to assigning credit ratings to companies. The demo uses the same financial ratios as Altman's z-score (see Altman [39] in Bibliography) as predictors of credit quality, and then it trains a classifier using one of the statistical learning tools available in Statistics Toolbox software. The classifier used in the demo outputs a classification score to help reviewers identify companies that fall into "gray areas" between ratings that require a closer look. The demo also discusses back-testing tools to evaluate the ratings accuracy.

Back to Top

Example

To run the Credit Rating by Bagging Decision Trees demo at the MATLAB command line, enter:

showdemo creditratingdemo

Back to Top

Credit Risk Analysis

Estimation of Transition Probabilities

© 1984-2012- The MathWorks, Inc.    -   Site Help   -   Patents   -   Trademarks   -   Privacy Policy   -   Preventing Piracy   -   RSS