A credit rating estimation tool is designed to predict the creditworthiness of entities based on various financial factors. With our credit rating estimation tool, you can calculate the credit rating of the entity. Our tool provides you with the Altman Z-score for the entity you evaluate, using information from that entity’s financial statements. Whether you want to set the interest rates in a loan transaction (which may be affected by the borrower’s credit rating) or you’re estimating your company’s credit rating for testing a transaction from a transfer pricing perspective, our quick and easy-to-use tool provides the data you need.

What is Altman Z-score?

The Altman Z-Score is a financial metric developed by Edward Altman in the 1960s. It’s used to predict the likelihood of a company entering bankruptcy within the following two years. Rather than presenting you with a single ratio for each area of the entity’s finances, it combines key ratios into a single score to give you an overall indication of the entity’s financial performance. This enables you to efficiently measure the entity’s risk of bankruptcy. A score of 2.99 or higher suggests a company is safe from bankruptcy, while a score of 1.81 or under suggests they are at risk. Scores in between indicate potential issues. The Altman Z-Score is widely used by investors, analysts, and creditors as a tool for assessing the financial health and risk profile of companies.

Whether you want to set the interest rate in a loan transaction or estimate your company’s reference credit rating, our quick and easy-to-use tool provides the data you need. Contact us and we will provide all information about the use of our Credit rating estimation tool.