Financial Institutions: Finance Company Global Rating Methodology (Proposed)
This proposed update to the Finance Company Global Rating Methodology is 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 this document that was published on November 28, 2017. The update 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 (BDCs). Finally, certain textual revisions were made to improve readability and transparency around the analytical approach. No ratings are expected to be impacted as a result of adopting this proposed update.
Executive Summary
This document describes KBRA’s global methodology for rating finance companies (FCs).…
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