CREDIT RISK SCORE

Assess Corporate Credit Risk with Confidence

The WVB Credit Risk Score provides a transparent, research-driven assessment of a company’s ability to meet its financial obligations. Built on robust financial data and proven methodology, it helps lenders, investors and businesses make better credit decisions across the globe.

219+ Countries & Territories
76,000+ Companies Worldwide
40+ Years of Financial History
Standardised Financial Statements

From Financial Data to Credit Insight

Our methodology transforms financial information into a clear measure of credit risk.

Financial Data

Standardised financial data collected from public and private companies.
5 Core Credit Factors

Evaluate the key financial drivers that determine creditworthiness.
WVB Credit Risk Score

A quantitative score reflecting the overall financial strength of the company.
Bond-Equivalent Rating

Map the score to an equivalent credit rating scale from AAA to D.

OUR METHODOLOGY

A Proven, Transparent Credit Risk Framework

The WVB Credit Risk Score is built on multiple discriminant analysis and extensive back-testing using financial data dating back to 1984. We focus on the five financial factors with the strongest predictive value for assessing a company’s debt capacity and financial strength.

1. Company Size

Measured by total assets. Size is the single largest indicator of debt capacity.

2. Risk-Adjusted Return

Measures the level and stability of cash flow generation over time.

5. Investments in Unconsolidated Subsidiaries

Adjusts for investments that do not support the parent company’s debt obligations.

3. Long-Term Debt to Total Capital

Evaluates financial leverage using the 3-year average long-term debt ratio.

4. Adjusted Total Liabilities to Net Worth

Reflects overall balance sheet strength using the most recent financial data.

Dynamic Market Adjustment

The score is reviewed quarterly and adjusted using the shape of the relevant government yield curve to reflect prevailing market conditions and expectations.

Yield Curve Adjustment

Aligns credit assessments with current economic and market conditions for greater relevance.

Bond-Equivalent Rating Scale

Rating	WVB Score
AAA	≥ 8.15
AA1	7.60 – 8.14
AA2	7.30 – 7.59
AA3	7.00 – 7.29
A1	6.85 – 6.99
A2	6.65 – 6.84
A3	6.40 – 6.64
BBB1	6.25 – 6.39
BBB2	5.85 – 6.24
BBB3	5.65 – 5.84

Rating	WVB Score
BB1	5.25 – 5.64
BB2	4.95 – 5.24
BB3	4.75 – 4.94
B1	4.50 – 4.74
B2	4.15 – 4.49
B3	3.75 – 4.14
C1	3.20 – 3.74
C2	2.50 – 3.19
C3	1.75 – 2.49
D	< 1.75

The rating represents the company as a whole on a senior debt equivalent basis.

Powering Better Credit Decisions Across Industries

LENDING & BANKING

Strong lending decisions and portfolio management

INVESTMENTS

Identify financially resilient companies with confidence

SUPPLY CHAIN

Monitor supplier risk and protect business continuity

INSURANCE

Assess counterparty risk and manage exposures

GOVERNMENT

Support procurement, regulation and economic risk assessment

FAQ

Frequently Asked Questions

1 What is the WVB Credit Risk Score?

The WVB Credit Risk Score is a transparent, research-driven measure of a company’s ability to meet its financial obligations, built on standardised financial data and a proven statistical methodology.

2 What factors are used in the Credit Risk Score?

Five core factors are used: Company Size, Risk-Adjusted Return, Long-Term Debt to Total Capital, Adjusted Total Liabilities to Net Worth, and Investments in Unconsolidated Subsidiaries.

3 How is the score calculated?

The score is derived using multiple discriminant analysis calibrated against decades of financial data, combining the five core factors into a single quantitative measure.

9 What is the rating scale used?

WVB maps its numeric score to a bond-equivalent rating scale ranging from AAA (strongest) down to D (weakest), mirroring familiar credit rating conventions.

10 What is the difference between Investment Grade and Speculative Grade?

Investment Grade (BBB3 and above) reflects lower default risk, while Speculative Grade (BB1 and below) indicates higher risk and greater sensitivity to economic conditions.

11 What supporting models are included?

The Credit Risk Score is complemented by yield curve adjustments, industry benchmarking, and access to the underlying standardised financial statements used in the calculation.