The
objective of this review is to assess and validate the methodology employed by
[the rating agency] for rating Small and Medium-sized Enterprises (SMEs). This
will involve a detailed evaluation of various aspects of the methodology,
ensuring its robustness, accuracy, and applicability to the target population
of issuers. Additionally, the review will compare and map the rating agency's
methodology to S&P's methodology and rating scale, ensuring alignment with
industry best practices.
This
review assumes that the credit rating agency is already fully endorsed by
European regulators, in line with the EU Credit Rating Agency Regulations (EC
1060/2009), and is recognized as operating on par with other major global
rating agencies.
Scope
of Activities:
The
review will cover the following key areas:
·
Qualitative
Validation
·
Data
Input Testing
·
Quantitative
Validation
·
Fine-Tuning
·
Calibration
to S&P Rating Scale
·
Comparison
and Mapping to S&P Methodology