LOAN PORTFOLIO ASSESSMENT

The aim of the portfolio rating is to find potential underestimates in the figure for the portfolio at risk reported by the financial institution. To this end, MicroRate addresses 3 important areas whose analysis is necessary to perform a diagnosis of the institution at this level.

Thus, firstly the depth of the Credit Risk stemming from the institution’s design and application of its credit methodology is analyzed, taking into account factors such as risk appetite, the economic and financial context involved, and potential opportunities for improvement in key processes such as the recruitment and training of business staff. To this we add the presentation of the results reported by the institution (Portfolio Quality), in order to then be able to reach a conclusion about the extent of the required adjustments to the indicator (Estimate of the Portfolio at Risk).

It is important to mention that the portfolio rating is customizable. MicroRate can add, at the requesting institution’s express request, that opinions be included regarding the alignment to best practices of the credit methodology, that a diagnosis of the company’s financial situation be presented, or that a judgment be issued - with technical support - on some specific aspect of the entity.