Credit Risk Grading Score Sheet
Credit Risk Grading Score Sheet
Credit Risk Grading Score Sheet
Score
Criteria Weight Parameter Score Actual Parameter Obtained
A. Financial Risk 50%
1. Leverage: (15%) Less than 0.25× 15 0.53 12
Debt Equity Ratio (×) - Times 0.26× to 0.35 x 14
Total Liabilities to Tangible Net worth 0.36× to 0.50 x 13
0.51× to 0.75 x 12
All calculations should be based on 0.76× to 1.25 x 11
annula financial statements of the 1.26× to 2.00 x 10
borrower (audited preferred) 2.01× to 2.50 x 8
2.51× to 2.75 x 7
More than 2.75× 0
2. Liquidity: (15%) Greater than 2.74× 15 54.00 15
Current Ratio (×) -Times 2.50× to 2.74 x 14
Current Assets to Current Liabilities 2.00× to 2.49 x 13
1.50× to 1.99 x 12
1.10× to 1.49 x 11
0.90× to 1.09 x 10
0.80× to 0.89 x 8
0.70× to 0.79 x 7
Less than 0.70× 0
3. Profitability: (15%) Greater than 25% 15 78.00% 15
Operating Profit Margin (%) 20% to 24% 14
(Operating Profit/Sales) X 100 15% to 19% 13
10% to 14% 12
7% to 9% 10
4% to 6% 9
1% to 3% 7
Less than 1% 0
4. Coverage: (5%)
Interest Coverage Ratio (×) - Times
Earning before interest & tax (EBIT) More than 2.00× 5 10.00 5
Interest on debt More than 1.51× Less than 2.00× 4
More than 1.25× Less than 1.50× 3
More than 1.00× Less than 1.24× 2
Less than 1.00× 0
Total Score- Financial Risk 50 47
CREDIT RISK GRADING SCORE SHEET