Rating monitoring of the receivables portfolio

OmniGradeCreating confidence!

OmniGrade

Creating confidence

Образец подзаголовка

Rating monitoring of the receivables Rating monitoring of the receivables portfolioportfolio

Mikhail Treyvish

Rating monitoring agency OmniGrade, President

Moscow, 2012


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Large receivables portfolio

Is evidence of the creditor’s (supplier of goods or services) success in sales

A quality portfolio is a reason to be proud and confident in the commercial success of the company

But insufficient quality of the portfolio is a source of possible financial loss and market position


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Rating monitoring of the portfolio regularly addresses and answers the following questions:

What is the quality of the portfolio?

Is there any possibility of major losses due to the portfolio?

What is the value of the portfolio?


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protects from a Domino Effect which makes good companies suffer from low quality in their accounts receivable (especially in case of national and global crises)

Rating monitoring of the portfolio


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Portfolio assessement (ratings) obtained during the rating monitoring process:

High quality portfolio and immunity to losses caused by external crises

Good quality portfolio, considerable losses are possible as a result of external crises

Satisfactory quality of the portfolio, disastrous losses are possible during crises

Poor quality portfolio, catastrophic losses are possible

____*Numerical coefficients are used for precise estimation

A*

B*

C*

D


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Rating monitoring of the portfolio depends on

Quality of portfolio management (selection and monitoring of debtors, debt collection)

Spread and diversity of portfolio

Creditworthiness of major debtors (customers, borrowers)

Absence / existence of fictitious debt (confirmation of validity of receivables)

Good Debtors alone do not guarantee a high quality portfolio!


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What does rating monitoring of the portfolio mean for CEO and shareholders?

Important signal

Positive rating means that there is no need to worry about the assets’ quality

Negative rating means that there is an opportunity to take urgent measures to improve the assets’ quality

Where rating monitoring is in place, the CEO has no need to investigate each debtor’s situation

Important argument for creditors, investors and suppliers


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In addition to regular and updated rating assessments the customer receives:

Reports containing analysis of the portfolio and recommendations

Portfolio value appraisal and recommended discount in case of purchase or using as collateral

Set of covenants which define and measure the quality and the stability of the portfolio

A Certificate of Participation in the rating monitoring programme


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Rating monitoring of the portfolio is an indispensable instrument:

For financial institutions:

banks factoring companies leasing companies microfinancial organizations insurance companies

For real economy companies - suppliers of goods and services

Rating monitoring of portfolio considers the particular nature of the customers’ business and their industry specific risks


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Rating monitoring of the portfolio is operated by Rating Monitoring Agency OmniGrade:

Highly capable international team

Unique competences in assessment and monitoring of accounts receivable of different origin

Long-term successful experience in the factoring industry


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Vienna-Moscow-Kiev-Yekaterinburg

Moscow OfficeMoscow Office::

RussiaRussia, 109012, , 109012, MoscowMoscow 4 Ilyinka str., Gostinyi Dvor4 Ilyinka str., Gostinyi Dvor, , Bussines CentreBussines Centre « «CapitalCapital»», 312, 312

wwwwww..omnigradeomnigrade..comcomtre_mi@[email protected]:Tel: +7 (495) 785-81-47 +7 (495) 785-81-47Fax:Fax: +7 (495) 785-81-47 +7 (495) 785-81-47

Vision of the Agency’s future: www.omni-v.com/en/visions/5

OmniGrade Rating Monitoring Agency


Thank you for your kind attention!

Rating monitoring of the receivables portfolio

Economy & Finance

Transcript of Rating monitoring of the receivables portfolio