Hi,
I was not entirely sure which forum to put this in, but it's probably investing ....
Does anyone know how these guys come up with their credit ratings for borrowers looking to raise funds ?
The reason I ask is because recently, I noticed they published a borrower at grade C (which from their scale, you might think was average), but when you looked at the financial information provided for the business there was absolutely no way the business could afford to repay the debt (it had a negative EBITDA and no mention of where improved financials were coming from, while the Current Ratio was also terrible - which was concerning, for a cash based business).
There was a question posted on their site about the financial results for this business, but it was never answered. Very disappointing for a regulated entity (UK regulated, as I understand it).
Thank you.
I was not entirely sure which forum to put this in, but it's probably investing ....
Does anyone know how these guys come up with their credit ratings for borrowers looking to raise funds ?
The reason I ask is because recently, I noticed they published a borrower at grade C (which from their scale, you might think was average), but when you looked at the financial information provided for the business there was absolutely no way the business could afford to repay the debt (it had a negative EBITDA and no mention of where improved financials were coming from, while the Current Ratio was also terrible - which was concerning, for a cash based business).
There was a question posted on their site about the financial results for this business, but it was never answered. Very disappointing for a regulated entity (UK regulated, as I understand it).
Thank you.
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