KBRA Releases Proposed Update to Finance Company Global Rating Methodology

KBRA releases a proposed update to its Finance Company Global Rating Methodology. This proposed update will be available for comment on KBRA’s website through December 3, 2026. After the public comment period, the proposal, if adopted, will supersede the version of the methodology that was published on November 28, 2017.

In this proposed update, KBRA provides greater detail on applying the existing scorecard framework, including scoring criteria for the Business Risk Determinants and scoring ranges for key Financial Risk metrics. The proposed update also provides specific financial metrics and scoring ranges for Business Development Companies. In addition, certain textual revisions were made to improve readability and transparency around the analytical approach. These include an Additional Considerations section and textual revisions in descriptions of Business Risk and Financial Risk Determinants that clarify the key factors that KBRA assesses. No ratings are expected to be impacted as a result of adopting this proposed update.

Click here to view the proposed methodology.