The rating process

1. 1. A risk analyst reviews the information stored in CofaceBdi systems. Including history of “Red Lights” identification of related companies, ownership, charges, etc.
   2. An analyst contacts subject company management and questions them on the company’s activities, its financial situation and business environment.
   3. A team of trained workers questions suppliers (activity volumes, payment morality, etc.), customers (activity volumes, clients satisfaction, etc.), and service providers (activity volumes, payment morality, etc.)
   4. The analyst analyses and evaluates the collected information and determines the company rating in accordance with the rating methodology.

1. The analysts’ team supervisor reviews the analyst’s rating and approves it.

Rating methodology is based on the analysis of the following data:

• Demographic data on companies (size, branch, foundation date, activity)
• Red Lights (history of significant negative events: payment morality, returned checks, restricted bank accounts, court suits, receiverships, etc.)
• Related companies (including ownerships, sister companies, subsidiaries, etc.)
• Financial data and financial reports
• Questioning of managers
• Company risk rating history
• Branch situation
• Macroeconomic data
• Supplier / customers questioning
• Data from branch information clearing houses
• Analysis of charges

CofaceBdi rating methodology has been used for approximately 19-years. CofaceBdi companies’ ratings are used by many companies in the economy, including the banking system and foreign credit insurance companies.