Analysis of the borrower's creditworthiness - legal entity carried out taking into account the current state of service by the borrower credit debt each time during the conclusion of an agreement on a credit transaction, and subsequently - at least once every three months.

When analyzing the creditworthiness of legal entities banking institutions must be guided by the NBU Regulations “On the procedure for the formation and use of reserves to compensate for possible losses resulting from credit operations of banks”, approved by Resolution of the NBU Board No. 279 dated July 6, 2000. In addition, a bank loan officer, as a rule, uses a comprehensive methodology for assessing solvency and creditworthiness borrower, which includes a system quantitative indicators and degrees credit risk bank (using calculations of financial indicators), statistical and expert methods for assessing credit risk, as well as logical and probabilistic modeling of the scheme for implementing a credit operation and credit connections with the borrower.

Among the whole range of measures for analyzing the creditworthiness of a borrower-legal entity, which are combined into unified system, individual components can be identified (Fig. 7.3).

Rice. 7.3. V A set of measures to analyze the creditworthiness of a legal entity borrower

Bank when making an assessment financial condition the borrower is obliged to take into account the main indicators established by the regulatory legal acts of Ukraine. In particular, to the main economic indicators activities of the client, which must be taken into account by the bank when assessing the financial condition of the borrower - a legal entity, include:

Solvency (instant, current and total liquidity ratios);

Financial stability (agility ratios own funds, ratio of attracted and own funds);

Volume of sales;

Account turnover (the ratio of receipts to the borrower's accounts and the loan amount, the presence of accounts in other banks; the presence of a file of non-payments - in dynamics);

Composition and dynamics of accounts receivable and payable (for the last reporting and current year);

Cost of production (in dynamics);

Profits and losses (in dynamics);

Profitability (in dynamics);

Credit history (repayment of credit debt in the past, availability of existing loans).

When assessing the financial condition of the borrower, the bank has the right to independently establish additional (subjective) indicators that should take into account the characteristics of the types of economic activity borrowers-legal entities and individuals-entrepreneurs.

An assessment of the financial and economic condition of a borrower-legal entity is carried out by a credit expert of a banking institution based on a set of indicators that most fully, from the point of view of a particular bank, reflect the financial condition of the client. To obtain reliable information about the borrower, the loan officer must analyze the financial condition for the last reporting period and for the previous reporting period, which must be similar in duration (a year, three quarters, half a year or a quarter). The duration of the period for assessing creditworthiness can be determined by the bank's credit officer independently, depending on the nature of the credit transaction and the relationship between the bank and the counterparty.

A set of coefficients for determining the creditworthiness of a legal entity borrower may include the following groups of indicators:

1. Absolute indicators:

a) the borrower’s own capital;

b) the borrower's assets.

2. Indicators of financial stability, reflecting the level of use of own and borrowed funds in the formation of the enterprise’s resources, clarifying its dependence on certain sources of funds, and, accordingly, the ability to repay debt.

The financial stability of the borrower is determined by the following indicators:

a) independence coefficient (IC), which characterizes the degree of financial risk:

where Зк - raised funds (long-term and current liabilities), Вк - equity capital;

b) the coefficient of maneuverability of own funds (CM) characterizes the degree of mobility of the use of own funds:

where Bk is the enterprise's equity capital, A" is non-current assets.

3. Solvency indicators, which allow us to assess the creditworthiness of an enterprise depending on the structure of its assets, the value of which correlates with the liabilities of the enterprise, indicating the liquidity of its balance sheet.

The solvency of the borrower is determined by the following indicators:

a) instant liquidity ratio (CL1), which characterizes how quickly Short-term liabilities can be repaid with highly liquid assets:

where A" are highly liquid assets, which include cash, cash equivalents and current financial investments,

Zp - current (short-term) liabilities, consisting of short-term loans and settlements with creditors;

b) current liquidity ratio (CL2), which characterizes the ability to repay short-term obligations on time:

where Al are liquid assets consisting of highly liquid assets, accounts receivable, bills received;

3" - current (short-term) liabilities, consisting of short-term loans and settlements with creditors.

The current liquidity ratio indicates the extent to which short-term liabilities can be repaid from funds in the current account, from other accounts in bank institutions, from funds in short-term securities, that is, what share of short-term liabilities can be repaid using cash and other funds in settlements;

c) total liquidity ratio (CL), which characterizes the extent to which the volume of short-term obligations and settlements can be repaid using all liquid assets:

where A0 - current assets;

Salary - current (short-term) liabilities, consisting of short-term loans and settlements with creditors.

4. Profitability indicators:

a) return on assets indicates how much profit the enterprise will receive from each hryvnia invested in property:

where Pch is net profit; A - assets;

b) return on sales reflects how much profit the enterprise will receive for each hryvnia of products sold:

where Pch is net profit;

Or - volume of product sales (excluding VAT). 5. Indicators of business activity: a) inventory turnover (in days):

where 03 is inventory turnover;

ZPssr - average inventory balances in the period;

Vtsir - production costs for the period;

b) accounts receivable turnover ratio (times):

where KOda is the receivables turnover ratio; Вр - revenue from sales of products (goods, works, services); DZser. - average accounts receivable;

c) accounts receivable turnover (in days):

where Od is the receivables turnover;

DZser, - average accounts receivable for the period;

n - number of days in the period;

d) share (%) of receivables for goods, works and services in current assets:

where Chda is the share of receivables for goods, works, services (%);

DZ - volume of accounts receivable; Lo - current assets;

e) turnover ratio of accounts payable for goods, works and services (times):

where KOkz is the accounts payable turnover ratio; Вр - revenue from sales of products (goods, works, services); KZSSR - average accounts payable; f) accounts payable turnover (in days):

where 0Yu is the turnover of accounts payable;

KZSSR - average accounts payable in the period;

Вр - revenue from sales of products (goods, works, services) for the period;

n - number of days in the period;

g) the ratio of receivables and payables for goods, works and services:

DS Kspiv. - ratio of receivables and payables for goods, works and services;

DZ - volume of accounts receivable;

KZ - volume of accounts payable.

6. Cash flow indicators:

a) net income ratio Money to all accounts of the borrower (including those opened in other banks) to the amount of the principal debt for credit transaction and interest thereon, taking into account the validity period of the loan agreement (for short-term loans) and for entities economic activity who received a loan in foreign currency, taking into account changes in the exchange rate:

where Ncm is the average monthly receipts to the borrower’s accounts over three last months(with the exception of credit funds);

Sk - the loan amount and interest on them (for loans in foreign currency, this amount is taken into account taking into account changes in the exchange rate);

n - number of months of validity of the credit agreement;

Zm - monthly semi-permanent obligations of the borrower (administrative and economic expenses, etc.);

C - tax payments and the amount of other obligations to creditors that must be paid from the borrower’s account, except for the amounts of obligations whose repayment period exceeds the term of the loan agreement (according to the last balance sheet).

For business entities whose activities are related to the seasonal nature of production, the average monthly amount of revenue is determined for 12 months. Regulatory acts NBU suggest that the optimal theoretical value of the K mass index is no less than 1.5.

b) the ratio of cash receipts from the sale of goods (works, services) to the sales volume:

where Нк - average monthly cash receipts (in hryvnia equivalent) from the counterparty's sale of goods (works, services) to the counterparty's current accounts in banking institutions (preferably - no less than the last six full calendar months);

Or - the sum of sales volumes of goods (works, services), other operating income, income from participation in capital, other financial income and other income of the counterparty in monetary terms, reduced to the average monthly value.

This indicator indicates the success of the counterparty's implementation policy and the level of payment discipline of its counterparties - buyers of its goods (works, services).

c) the stability of receipts of funds into accounts is indicated by the average monthly number of cases (once a month) when funds are received (in hryvnia equivalent) from the counterparty’s sale of goods (works, services) to the counterparty’s current accounts in banking institutions.

When researching cash flows borrower, banking institutions can build schemes for the movement of credit funds between the borrower and his partners, indicating the banks through which the funds will pass (Fig. 7.4).

The concentration of funds in the accounts of the borrower's partners in the creditor bank will eliminate the risk of instability of other banks, affecting the settlements. In this case, when providing a loan, banking institutions may require the borrower to open current accounts with the bank institution that provides the loan. These accounts must be used to pass through them the main cash flows of the client and the transfer of credit funds (for goods and services) mainly by clients who are serviced by the institution of this bank (i.e., opening current accounts of its business partners).

cash flows between the borrower and its subsidiaries and intermediary structures cannot be ignored. In order to prevent the diversion of credit funds, the employee servicing the borrower of the bank institution must constantly monitor their monetary relationships.

7. Other general indicators (the borrower’s work experience in the main type of activity (in years); information about the business entity, the popularity of its trademarks, etc.).

A banking organization can also independently establish certain requirements for borrowers depending on the client’s industry. In particular, taking into account market conditions, the most stringent requirements may be for the performance of clients operating in the fields of trade, services, manufacturing, communications, communications and transport. Less critical requirements will be put forward to the values ​​of indicators of borrowers operating in the mechanical engineering industry, Agriculture, forestry and in the fuel and energy industry. Banks can apply the most lenient requirements to the values ​​of indicators of clients working in the field of construction.

* Partners and contract details must be indicated

Rice. 7.4. V

The indicators obtained as a result of the calculations are processed using the point scale adopted by the bank (Table 7.1). In this case, the value of each coefficient corresponds to a certain number of points. In addition, the score assigned to the value of each indicator is weighted by the corresponding weight coefficient.

The final rating assessment of the borrower's financial condition is calculated as the sum of the products of each indicator value (score) by the corresponding weight coefficient. In accordance with the scale established by the bank, the result obtained allows the client to be assigned to a certain class according to the reliability rating, which corresponds to the range of values ​​in which the final rating score falls.

Table 7.1. V

So, based on the results of assessing the financial condition of the borrower, the bank determines the class of the borrower based on the total score for the main and additional (subjective) indicators. Wherein specific gravity total points for established bank additional (subjective) indicators cannot exceed 30% of the total score determined by the bank based on the results of assessing the financial condition of the borrower.

Such additional (subjective) indicators of the borrower’s performance include qualitative characteristics of both the management of the enterprise and the environment in which the borrowing enterprise operates. At the same time, for a qualitative assessment of the creditworthiness of legal entity borrowers, it is advisable to take into account the following two areas:

1) assessment of the state of management at the enterprise;

2) assessment of the market environment.

In particular, assessment of the state of management includes:

Management level, which is characterized by the professional experience of enterprise managers, connections in business circles, education, technical knowledge, frequency of changes in enterprise management, etc.;

Efficiency of the borrower's management system;

Professionalism of management and its business reputation;

The degree of trust in the client, which is examined by the bank by identifying the openness, honesty of the borrower, willingness to provide factual and reliable information, analysis of the form of ownership of the enterprise, constituent documents, charter, composition of founders, powers of managers, activities of subsidiaries, the presence of litigation, etc.;

The borrower’s credit history, which makes it possible to obtain information about the client’s previous relationships with the bank and the history of repayment of loan debt in the past.

Assessments of the borrower's market environment include:

The location of the enterprise, which allows the bank to find out its accessibility to customers, distance from suppliers;

Type of activity of the enterprise, its affiliation with production, wholesale and retail trade, etc.;

The macroeconomic situation in the country and the state of development of the borrower’s industry;

The market position of the borrower and its dependence on cyclical and structural changes in economics and industry;

Availability of government orders and government support for the borrower;

Attractiveness of the product (price, quality, assortment, presence of a target group of consumers);

Factors of production (analysis of the state of the borrower's fixed assets, availability of communications, information support, personnel qualifications).

When analyzing the qualitative characteristics of the borrower, the loan officer must evaluate the manager’s abilities, in particular, the ability and ability to lead people (motivation of employees, understanding, trust and respect), education and experience of senior management (training at an educational institution, basic business skills, etc. .), entrepreneurial spirit (entrepreneurial abilities, determination, emotional and financial commitment to the business), professional skills (knowledge of the production process, sales, advertising, ability in research and development, established contacts with clients, suppliers). In this case, the character of the borrower can be determined by the following factors: - honesty (negotiations have been held with suppliers, clients, creditors will give more real assessment credit history and character of the borrower);

Financial conservatism (high personal expenses, lifestyle, desire to repay debts);

Respect for the creditor bank (timely provision of information, discussion of business issues and future activities enterprises, informing about problems arising, etc.).

When analyzing the borrower's creditworthiness credit specialist should also consider organizational structure and functions of the enterprise’s divisions, the system of rewards and motivation, assessment and control of responsibilities, selection and training of enterprise employees. In this case, the credit department specialist must take into account possible risk changes in the management of the borrowing enterprise or the activities of the company, the possibility of expanding production (entering the market with new products, changes in sales volumes).

In this case, the qualitative criteria for assessing the creditworthiness of a legal entity borrower, as a rule, are included in the general analysis of the borrower’s creditworthiness determined by the bank, along with basic and additional quantitative indicators. A scale of points is also established for them (depending on the answer option), which are multiplied by the corresponding weighting factor for the overall calculation.

So, when the bank assesses the creditworthiness of borrowers - legal entities, an analysis of the main quantitative and qualitative indicators of the client’s activities is carried out. At the same time, banking institutions independently develop their own methods for assessing the creditworthiness of borrowers, taking into account all the necessary criteria that can better characterize the financial condition and activities of the borrower. Such methods for assessing the creditworthiness of borrowers are approved by banks in the relevant internal regulations.

The criteria for assessing the creditworthiness of a bank client set out in Chapter 1.1 determine the content of the analysis methods used (Figure 2).

Figure 2 - Methods for assessing creditworthiness Compiled by the author from: .

In order to truly assess a client's creditworthiness, we first need to collect his personal information. Before concluding a transaction, it is necessary to develop the counterparty, i.e. check his reliability and solvency. Such a check of a legal or natural person is aimed at ascertaining his ability, opportunity and desire to fulfill his contractual (or debt) obligations, as well as the controllability of his actions to other persons. This is necessary in order to prevent the occurrence of receivables.

The lending department requests the documents necessary for consideration of the application, incl. constituent and title documents, financial documents, documents on the proposed security, intended use of the loan, business plan, cash flow forecast and others.

The Borrower may also be asked for information held by credit bureaus about credit history(s) with other banks. The lending department independently decides on the advisability of obtaining information stored in the credit history bureau about the borrower’s credit history(s) with other banks. This information can be obtained as follows:

The loan application is considered by the lending division together with other divisions of the Bank: risk division, legal division and security division, as well as, if necessary, with other divisions. The procedure for interaction between the Bank's divisions when considering an application for a loan (including the timing of consideration) is established by separate regulatory documents, taking into account the specifics of the lending operations carried out.

An employee of the lending department analyzes and summarizes the materials submitted by the potential Borrower and the Bank's divisions and prepares a conclusion on the possibility of providing a loan.

When preparing the conclusion, the lending department analyzes the financial condition and creditworthiness of the Borrower, as well as the transaction being financed, incl. business plan or feasibility study of the loaned transaction, proposed collateral.

The lender can obtain the information necessary to develop a counterparty from a variety of sources.

TO open sources include: the legal entity itself; constituent documents, registration certificates, licenses, business contracts (lease of premises, purchase and sale of real estate, etc.), financial statements, audit results and tax audits etc. By studying the working methods of a potential client, analyzing the indicators of its financial statements, you can also obtain the information necessary for its development. In addition to the documents listed above, the potential buyer may also be asked for documents such as minutes of the meeting on the appointment of a person to the position of manager, copies of cards with signatures of persons entitled to manage the current account, powers of attorney, letters of recommendation from partners and other counterparties, etc. Before signing of the contract, it is necessary to carefully check whether the power of attorney submitted by the representative of the counterparty meets the requirements of Chapter. 10 Civil Code Russian Federation(Civil Code of the Russian Federation), and whether the powers specified in the power of attorney correspond to the legal essence of the transaction, its quantitative and qualitative indicators. The constituent documents are subject to careful study.

If the counterparty himself provides all the required information, this is evidence of his readiness for honest and mutually beneficial cooperation and interest in it. Other information confirming the legal status, business reputation and economic viability of the counterparty is also used. It is necessary to regularly conduct a scheduled check of existing documents, their reliability, and also constantly collect available news about clients.

a) liquidity ratios;

b) efficiency (turnover);

c) financial leverage;

d) profitability;

d) debt service.

The creditworthiness indicators included in each of the listed groups are very diverse. The most frequently used indicators of the first group include current and quick (operational) liquidity ratios. The current liquidity ratio (KTL) reflects the company's ability to pay off current liabilities through current assets:

Ktl= current assets/current liabilities (1)

If the debt obligations exceed the client's funds, then he is uncreditworthy. The recommended value considered is from 1 to 2.

The quick liquidity ratio (KLR) is calculated as follows:

Ksl=(cash + short-term receivables + short-term financial investments) / Short-term liabilities. (2)

Liquid assets represent that part of current assets that relatively quickly turns into cash ready to pay off debt. In global banking practice, active assets include cash (cash and correspondent account balances) and accounts receivable; in Russian banking, a portion of quickly sold inventories is added to the listed items. The quick liquidity ratio characterizes the ratio of the most liquid part working capital to short-term liabilities.

The absolute liquidity ratio (Kal) shows what part of short-term liabilities can be repaid using available funds. It is calculated as:

Cal= cash/current liabilities (3)

The coefficient of autonomy (independence) (Ka) characterizes the extent to which the assets of an enterprise are formed from its own funds.

Ka= equity capital/assets (4)

The ratio of own working capital (Kob) shows what part of current assets is fixed at the expense of own funds. The recommended value is less than or equal to 0.1. Calculated:

Kob = (Equity - non-current assets) / assets (5)

Financial leverage ratios (CLR) characterize the degree to which the borrower is provided with equity capital. Options for calculating these coefficients may be different, but the economic meaning is the same: to estimate the amount of equity capital and the degree of dependence of the client on the attracted resources. In contrast to liquidity ratios, when calculating financial leverage ratios, all debt obligations of a bank client are taken into account, regardless of their terms. The higher the share of borrowed funds and the lower the share of equity capital, the lower the client’s creditworthiness class. The recommended value is between 0.7 and 1.0.

CFL= debt capital/equity capital (6)

The working capital turnover ratio shows how many turnovers the working capital made during the analyzed period.

Revenue / average cost of working capital (7)

The ratio of accounts receivable to accounts payable shows the company's ability to pay creditors using accounts receivable. The recommended value is less than or equal to 1.

Accounts receivable/accounts payable (8)

Debt service ratios become important in conditions of high inflation, when the amount of interest paid may approach or even exceed the client's principal debt. The larger part of the profit is used to cover interest and other fixed payments, the less it remains to pay off debt obligations and cover risks, that is, the worse the client’s creditworthiness.

Return on assets shows how much profit there is for each ruble invested in the organization's property. Calculated as:

Net profit/average asset value (9)

Product profitability shows how much net profit accounts for one ruble spent on products. Calculated as:

Net profit/cost (10)

Return on sales shows the share of profit in each ruble earned. It can be found by dividing net profit by revenue.

All groups of financial ratios can be calculated based on both reporting and forecast data.

The next step in determining creditworthiness is an analysis of the company's cash flow. The method is based on a study of actual indicators characterizing the turnover of funds from a commercial bank client in reporting period. This point consists in comparing the inflow and outflow of funds from the borrower for a period usually corresponding to the term of the requested loan. When issuing a loan for a year, cash flow analysis is carried out on an annual basis, for a period of up to 90 days - on a quarterly basis, etc.

The elements of the inflow of funds for a period are: profit received in a given period; depreciation accrued for the period; release of funds from inventories, accounts receivable, fixed assets, and other assets; increase in accounts payable; growth of other liabilities; increase in share capital; attracting new loans.

The following elements of outflow of funds can be distinguished: payment of taxes, interest, dividends, fines and penalties; additional investments in inventories, accounts receivable, fixed assets, and other assets; reduction of accounts payable; reduction of other liabilities; outflow of share capital; repayment of loans.

The difference between the inflow and outflow of funds determines the amount of total cash flow. As can be seen from the above list of elements of inflow and outflow of funds, changes in the size of inventories, accounts receivable and payable, other assets and liabilities, fixed assets have different effects on the total cash flow. To determine this impact, the balances of inventories, receivables and payables at the beginning and end of the period are compared. An increase in the balance of inventories, debtors and other liabilities during the period means an outflow of funds and is shown in calculations with a “-” sign, and a decrease means an influx of funds and is recorded with a “+” sign. An increase in creditors and other liabilities is considered as an inflow of funds, a decrease - as an outflow.

The algorithm for calculating total cash flow can be presented as follows:

Total cash flow (net cash) = Sales proceeds - Payments to suppliers and personnel + Interest received - Interest paid - Taxes - Fines + Proceeds from the sale of fixed assets - Capital investments + Loans received - Debt repayment + Bond issue + Share issue - Buyback shares - Dividend payment (11)

To analyze cash flow, data is taken for at least three past years. If the client had a stable excess of inflows over outflows of funds, then this indicates his financial stability - creditworthiness. A systematic excess of outflow over inflow of funds characterizes the client as uncreditworthy.

The resulting average positive value of the total cash flow (the excess of inflows over outflows of funds) can be used as a limit for issuing new loans. The specified excess shows the amount to which the client can repay debt obligations over the period. Based on the ratio of the total cash flow and the size of the client’s debt obligations, the creditworthiness class is determined. Standard levels of this ratio: 1st grade - 0.75; 2nd - 0.30; 3rd - 0.25; 4th - 0.20; 5th - 0.15.

When using financial ratios and the method of cash flow analysis, one should keep in mind an important circumstance: modern Russian business practice shows that quite often there are cases of deliberate distortion by potential borrowers of the established forms of accounting and financial statements, as a result of which an analysis of the creditworthiness of clients only on the basis of official reports can lead to to serious mistakes and losses.

Next, you need to assess business risk. Business risk is the risk associated with the fact that the circulation of the borrower's funds may not be completed on time and with the expected effect. Business risk factors are various reasons leading to interruption or delay in the circulation of funds at certain stages. These factors can be grouped according to the stages of the cycle:

a) creation of inventories: number of suppliers and their reliability, availability of prices for raw materials and their transportation for the borrower, remoteness of suppliers, currency risk factors, etc.;

b) production: availability and qualifications of labor, age and capacity of equipment, equipment load, etc.;

c) sales of products: the number of buyers and their solvency, the level of competition in the industry, the presence of problems of overproduction in the market for these products, etc.

In conditions of economic instability, analysis of business risk at the time of issuing a loan significantly complements the assessment of the client’s creditworthiness based on financial ratios and cash flow studies.

Thus, there are various methods for determining the creditworthiness of a borrower. None of the methods discussed is universal. In practice, banks often use a set of methods to reduce credit risks.

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3. Basic methods for assessing the creditworthiness of legal entities used in Russian banks

Currently, there is no single standardized system for assessing creditworthiness in the world. Banks use various systems analysis of the borrower's creditworthiness.

There are three main methods of assessing creditworthiness.

1. Analysis of financial ratios. A qualitative analysis of financial ratios consists of the need to determine for each of them restrictions, deviation from which in one direction or another is not a positive moment in the organization’s activities, or such an analysis is generally impossible due to objective reasons.

2. Cash flow analysis. When assessing the amount of cash flow, the inflows and outflows of the borrower's funds for the period corresponding to the lending period are compared. Based on the data obtained, cash flow for the planned period can be modeled.

3. Business risk analysis. The following main business risk factors can be identified: reliability of suppliers; seasonality of supplies; duration of storage of raw materials and materials; etc.

The most important and most frequently used source of credit information Russian banks consider the auditor-certified financial statements of the borrower. This is explained by financial statements indicates the financial and economic position of the enterprise and allows you to calculate the indicators and ratios necessary to assign a credit rating. At the same time, domestic banks, and as evidenced by accounting scandals involving the manipulation of reporting data in the West, and foreign banks There should be greater use of alternative information, such as from external sources. Otherwise, the reliability of the assigned rating is called into question.

Banks attach great importance to the borrower’s credit history accumulated in a given credit institution. Of course, it serves as a source of reliable and reliable information, but when concluding loan agreement the first time cannot be used. In this case, the bank turns to independent sources of information. Unfortunately, as statistics show, the use of this source is sporadic.

Solvency. Insolvency, as a rule, is evidenced by uncovered losses from previous years, uncovered losses of the reporting year, short-term and long-term bank loans, overdue short-term and long-term accounts payable, bank loans for employees that were not repaid on time.

Property status. As part of the analysis of the borrower's property status, a vertical and horizontal analysis of the financial statements is carried out, which allows one to get the most general idea of ​​the qualitative changes that have taken place in the structure of funds and their sources, as well as the dynamics of their changes.

Liquidity. Liquidity assessment consists of determining the volumes and sources of funds used to cover various types of assets of the organization. Depending on the ratio of indicators of own working capital and sources of financing of inventories, the type of current financial stability of the borrower is determined with some degree of convention: absolute financial stability; normal financial stability; unstable financial situation; critical financial situation.

An analysis of the activities of the largest banks shows that not all borrowers of a credit institution are assigned a credit rating. While the vast majority of large borrowers receive a credit rating, a fairly large proportion of medium and small enterprises remain outside the scope of rating procedures. This may be due to the small volumes of funds raised, as well as the physical impossibility of the bank to assign a rating to each enterprise.

In domestic practice, sufficient experience has been accumulated in assessing the financial situation of borrowing enterprises. Appeal to this experience can be useful in modern conditions, since we can speak with confidence about the fact that the determination of a client’s creditworthiness is individual and subjective in each credit institution and general recommendations on this issue are not enough. Unfortunately, we have to admit that a detailed algorithm for determining a credit rating is a kind of know-how of a particular bank (rating organization). We cannot speak with confidence about the degree of influence of individual factors on the rating value. Although in the case of using models of direct expert assessment, the question of the degree of influence of factors remains open in any case.

Methodology of the Bank of Russia. The most important source of information about the financial condition of the borrower is the financial statements of the enterprise. Credit organisation calculates the following indicators:

Current liquidity ratio, which characterizes the enterprise's security with its own funds and is calculated as the ratio of current assets and the most urgent liabilities of the enterprise (short-term liabilities minus some balance sheet items);

The equity ratio, which determines the availability of own working capital necessary for financial stability, and is calculated as the ratio of the difference section III“Capital and reserves” and section I “Non-current assets” and section II “Current assets”;

The value of the borrower's net assets, which should not be less than authorized capital enterprises.

Additional requirements of the Bank of Russia include analysis of the borrower's cash flow forecast, planning of sales and profit, as well as analysis of the business plan and feasibility study (feasibility study) of the loan. It is also advisable to familiarize yourself with the borrower’s credit history. No credit rating is assigned.

The main criterion of creditworthiness is the financial condition of the borrower, the analysis of which is carried out in the following areas:

Financial results (profit, loss);

Liquidity (solvency);

Market position (business activity, competitiveness, stable dynamics of market position);

The factors formulated below allow us to identify the main areas of assessment of a borrower’s creditworthiness by rating agencies.

Qualitative factors:

Analysis and forecast of industry development;

Technological innovations;

State of the enterprise;

Assessment of management level;

Range of products;

Competition;

Barriers to entry into the industry;

Administrative regulation;

Diversification of activities;

Ownership structure, degree of dependence;

Cost structure.

Quantitative factors:

Cash flow indicators;

Capital structure of the enterprise (long-term sources of financing, off-balance sheet liabilities);

Profitability indicators;

Financial independence (possible restrictions on activity related to insurance obligations undertaken, loans received, bonds are studied).

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The article offers a look at the existing theoretical and methodological apparatus for assessing the borrower’s creditworthiness at Russian market credit services. The limitations of the system of evaluation criteria are revealed. The insufficiency of methodological support for the process of assessing non-financial parameters of the borrower is emphasized, which reduces the objectivity of the assessment. Commercial banks use various methods and means of analyzing the borrower's creditworthiness. Among the reasons for this diversity, several can be identified: different degrees of confidence in quantitative and qualitative methods for assessing creditworthiness factors, features of historically established individual principles, lending culture and practice of creditworthiness assessment, and the use of a certain set of tools for minimizing credit risk. The presented methods for assessing the borrower’s creditworthiness show that one of the main directions of analyzing the borrower’s condition when assessing his creditworthiness is the financial analysis. Various aspects of financial analysis as a specific system are reflected in all presented methods for assessing the quality of potential borrowers used by banks. Analysis of the borrower's financial condition is the most significant characteristic of his creditworthiness. However, the assessment of the borrower's creditworthiness should be carried out taking into account his individual characteristics. Otherwise (with a unified methodology for assessing all enterprises), factors that can significantly influence financial results not only the borrower, but also the bank. At the same time, one cannot ignore the fact that increasing the flexibility of the borrower assessment methodology inevitably leads to an increase in the labor intensity of analytical calculations and an increase in the costs associated with their implementation.

index

methodology

creditworthiness

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The Central Bank of the Russian Federation recommends commercial banks develop your own scorecard financial activities borrowers. The methodology for assessing the financial condition of borrowers is formalized in a separate regulation and approved by the board of a commercial bank.

Commercial banks use various methods and means of analyzing the borrower's creditworthiness. Among the reasons for this diversity, several can be identified: different degrees of confidence in quantitative and qualitative methods for assessing creditworthiness factors, features of historically established individual principles, lending culture and practice of assessing creditworthiness, the use of a certain set of tools for minimizing credit risk.

A commercial bank must conduct a quarterly assessment of the borrower's financial condition. The very fact of determining the creditworthiness and financial condition of the client should stimulate the borrowing company to increase the efficiency of its financial and business activities.

To assess the financial condition and creditworthiness of a borrower - a legal entity (except for commercial banks), clearly defined objective indicators of its activities should be taken into account, such as: sales volume, profit and losses; profitability; liquidity ratios; cash flows (receipt of funds into the borrower's accounts) to ensure repayment of the loan and payment of interest on it; the composition and dynamics of accounts receivable and accounts payable are other parameters characterizing the financial and economic activities of the enterprise.

A commercial bank must also take into account factors that are largely subjective in nature: the efficiency of management of the borrower’s enterprise; the market position of the borrower and its dependence on cyclical and structural changes in the economy and industry; availability of government orders and government support for the borrower; the borrower's history of repayment of credit debt in the past.

The analyzed methods have similarities and differences; each method has its own advantages and disadvantages.

For clarity, let's imagine brief description and analysis of methods for assessing creditworthiness (Table 1).

Table 1 - Analysis of methods for assessing the creditworthiness of legal entities

	Methodology	Positive aspects	Negative aspects
Sberbank	To determine the lending limit, a quantitative and qualitative assessment of five groups of risk factors is carried out: 1. Risks associated with the structure of share capital and the internal structure of the corporate client; 2. Risks associated with the credit history and business reputation of the borrower; 3. Risks associated with management efficiency; 4. Risks associated with the borrower’s position in the industry and region, production equipment and the level of use of modern technologies; 5. Risks associated with the financial condition of the borrower. The financial condition of the borrower is assessed based on three groups of indicators. Evaluation of the results of coefficient calculations consists of assigning a category for each of these indicators based on comparison of the obtained values ​​with the established sufficient ones. after which the sum of points is calculated taking into account the weight of the indicator. After this, the borrower’s creditworthiness class is determined and a conclusion is made about the possibility of issuing a loan.	Simplicity and transparency of assessment; Accounting for quantitative and qualitative indicators of the borrower’s creditworthiness; The insights analysts apply go beyond data accounting and reporting; The structure of share capital and the internal structure of the corporate client are taken into account; Taken into account credit history and business reputation of the borrower; The effectiveness of management is taken into account, including the level of senior managers; The borrower’s position in the industry and region, level of equipment is taken into account modern technologies; Each of the applied coefficients used to assess the financial condition has a reference value with which its calculated counterpart is compared; Restoring the credit class when full repayment overdue debt.	The reference value of the coefficients is not differentiated for individual industries that have different structures of assets and liabilities; The reference value of the coefficients is not differentiated by territorial basis; Weighting coefficients are quite subjective, while minor shifts in the weighting coefficient system can fundamentally change the final result and transfer the borrower from one class to another; The indicators used in the analysis of creditworthiness are calculated based on reported data, which do not provide an idea of ​​​​the long-term creditworthiness of the borrower; Information regarding estimated cash flows and financial results is not taken into account when determining the class of the borrower; Any errors and inaccuracies in determining the critical value of the sum of points can give a fundamentally incorrect result.
Rosselkhozbank	Financial position is the most important characteristic of the reliability of a legal entity. Analysis of the financial situation includes the following steps: 1.Analysis of the composition, structure and quality of the balance; 2.Analysis of performance results; 3. Calculation of indicators of liquidity, solvency and turnover, other quality indicators; 4.Conclusions about financial situation based on the results of the review; 5. Forecast of development prospects. When determining the financial position of a legal entity, the calculated indicators are compared with industry averages and analyzed over time;. Based on the results of the review, a conclusion is drawn up indicating the criteria on the basis of which the financial position of the borrower is assessed as good, average or bad.	Availability of specially developed formulas to determine the financial situation of the borrower; Use of reference values ​​of financial ratios, differentiated by industry; Taking into account changes in indicators over time with subsequent construction of a forecast; A long analyzed period, which makes it possible to build a fairly accurate forecast of the borrower’s long-term creditworthiness.	Lack of formal assessment of non-financial parameters; Non-financial indicators are taken into account additionally and do not make a significant contribution to the assessment results; Any errors and errors in determining the critical value of the sum of points can give a fundamentally incorrect result; The reference values ​​of the coefficients are not differentiated by territorial basis.
	Assessing the borrower's creditworthiness includes the following steps: Analysis of the feasibility study of the loan; Assessment of the security of the requested loan; Assessment of the borrower's financial condition. A preliminary conclusion is prepared for each stage. For each direction of assessing creditworthiness, the primary indicators of the first level are calculated, the average indicators of the first level are determined, and the normalized basic indicators of the first level are calculated. The second level indicators are being consolidated. The conclusion about the possibility of issuing a loan is made on a three-point scale with the following wording: “Providing a loan is appropriate” (2), “Providing a loan is appropriate under the conditions...” (1), “Providing a loan is inappropriate” (0 ).	Simplicity and transparency of assessment; Taking into account quantitative and qualitative indicators of the borrower’s creditworthiness; Availability of corrective factors taken into account when assessing the financial condition of a legal entity; Assessment of loan effectiveness; Taking into account the development prospects of the borrower; Use of standard values ​​of standardized indicators differentiated by industry; Drawing up preliminary conclusions at each stage of assessing the borrower’s creditworthiness, allowing one to quickly identify the strengths and weaknesses of a legal entity.	Lack of corrective factors taken into account when assessing the borrower’s creditworthiness; The use of arithmetic averages when assessing financial status; The standard values ​​of the coefficients are not differentiated by territorial basis; Any errors and errors in determining the critical value of the sum of points can give a fundamentally incorrect result; The need to provide a wide range of information about the borrower and the loan.

The presented methods for assessing the borrower's creditworthiness show that one of the main directions of analysis of the borrower's condition when assessing his creditworthiness is financial analysis. Various aspects of financial analysis as a specific system are reflected in all presented methods for assessing the quality of potential borrowers used by banks. Analysis of the borrower's financial condition is the most significant characteristic of his creditworthiness.

However, the content and main aspects of the financial analysis by the lender of the borrower differ from these characteristics of the analysis carried out by the organization itself to identify its weaknesses. The lender carries out financial analysis with less detail, since the main goals are to assess the borrower’s creditworthiness and assess the risk of his financial stability for the duration of the loan agreement. Each commercial bank establishes a specific set of financial indicators and their standard values ​​independently, since today there is no regulatory documents regulating this area.

In the considered methods for assessing the borrower’s creditworthiness, three groups of assessment indicators are used to assess the financial condition:

1) liquidity ratios;

2) autonomy coefficients;

3) profitability and turnover ratios.

The composition and content of indicators reflecting the financial and economic position of the borrower is different. Among the liquidity indicators for the three banks, the following are common: the current liquidity ratio (total coverage ratio) and the absolute liquidity ratio. The coefficient of autonomy (concentration of own funds) is also taken into account in all presented methods. For turnover and profitability indicators, the following are common: inventory turnover ratio, accounts payable turnover ratio and return on sales indicator.

It should be noted that the listed indicators, calculated in the described methods, have different standard values. This discrepancy is due to the methodology used by the bank for calculating industry average (standard) values ​​of the indicator.

In addition to quantitative indicators, when issuing loans, banks take into account the qualitative characteristics of the borrower (business reputation of the legal entity, credit history of the borrower, management efficiency, etc.).

The main disadvantage inherent in all proposed methods is the insufficient methodological basis for assessing the non-financial parameters of the borrower. Although the latter are taken into account when assessing the creditworthiness of a legal entity, they have little effect on the assignment of the borrower to a particular class. The quantified assessment of non-financial parameters, developed by Rosbank, is possible only if a wide range of information about the borrower is provided, which is not always available to the bank, which makes it difficult to use in practice.

The main source of information when classifying a borrower into any class is financial reporting, which has a number of disadvantages as an information base. The opacity of doing business in Russia leads to the fact that when assessing the financial condition of an enterprise in our country, it is necessary to use a combined analysis of management and fiscal reporting, since the latter does not allow external users to see the real picture of the business in question, and therefore understand the actual risks of lending to the enterprise in question.

Almost all indicators used in the analysis of creditworthiness are calculated based on reporting data, that is, a historical assessment of the borrower’s credit capabilities is made. An assessment is made of whether the company could service and repay the requested loan in the past period. Retrospective information does not provide insight into the future creditworthiness of an enterprise.

Despite the fact that the borrower provides banks with information regarding estimated cash flows and financial results, the construction of forecast financial documents is carried out in a simplified manner, mainly using the trend method, and their data is not directly taken into account when determining the class of the borrower.

A common drawback, inherent not only to the presented methods, but also to all Russian ones, is associated with the peculiarities of doing business in Russia, in particular, the weak transparency of the financial and economic activities of the enterprise. Thus, any method for assessing the creditworthiness of a legal entity is highly sensitive to distortion (unreliability) of source data, especially financial statements.

The developed methods are unified, that is, they have a certain set of indicators and criteria by which the borrower’s creditworthiness is assessed, which makes it possible to quickly and with minimal effort analyze a large volume of loan applications, thus reducing operating costs.

However, the assessment of the borrower's creditworthiness should be carried out taking into account his individual characteristics. Otherwise (with a unified methodology for assessing all enterprises), factors that can significantly influence the financial results of not only the borrower, but also the bank may remain out of sight.

At the same time, one cannot ignore the fact that increasing the flexibility of the borrower assessment methodology inevitably leads to an increase in the labor intensity of analytical calculations and an increase in the costs associated with their implementation.

As the analysis shows, in practice, the specifics of the activities of a legal entity and the parameters of the requested loan have virtually no influence on the choice of the indicators being studied. In the methods for assessing the creditworthiness of the legal entity Rosselkhozbank and Rosbank Bank, only certain types of creditworthiness are taken into account - according to the industry of the enterprise, which is expressed in the differentiation of regulatory restrictions on individual financial ratios. While each industry has a number of its own characteristics that affect the results of the financial and economic activities of the enterprise.

Reviewers:

Tarasov A.V., Doctor of Economics, Professor of the Department of Economics and Mathematics, Penza State University, Penza.

Dresvyannikov V.A., Doctor of Economics, Associate Professor of the Department of Management and Marketing, Penza Branch of the Financial University under the Government of the Russian Federation, Penza.

Bibliographic link

Finogeev D.G., Shcherbakov E.M. ASSESSMENT OF THE CREDITABILITY OF LEGAL ENTITIES ON THE EXAMPLE OF THE LARGEST BANKS OF THE RUSSIAN FEDERATION // Contemporary issues science and education. – 2013. – No. 6.;
URL: http://science-education.ru/ru/article/view?id=10779 (access date: 02/01/2020). We bring to your attention magazines published by the publishing house "Academy of Natural Sciences"