CREDIT RISK SCORE

Assess Corporate Credit Risk with Confidence

Q: What is a Credit Risk Score?

A Credit Risk Score is a quantitative assessment of a company's financial strength and its ability to meet financial obligations. WVB's Credit Risk Score is built on multiple discriminant analysis and back-tested using financial data dating back to 1984.

Q: What factors influence the WVB Credit Risk Score?

The score evaluates five core financial factors: (1) Company Size — measured by total assets; (2) Risk-Adjusted Return — level and stability of cash flow; (3) Long-Term Debt to Total Capital — 3-year average leverage ratio; (4) Adjusted Total Liabilities to Net Worth — overall balance sheet strength; (5) Investments in Unconsolidated Subsidiaries — adjusted for investments not supporting parent debt.

Q: Does WVB rate corporate bonds?

No. WVB evaluates the overall financial strength of a company rather than assigning ratings to individual debt issues. The score represents the company's creditworthiness on a senior-debt equivalent basis.

Q: Why doesn't the WVB Credit Risk Score always match S&P, Moody's or Fitch ratings?

The WVB Credit Risk Score uses a transparent, quantitative methodology focused on underlying financial strength — profitability, leverage, capital structure, and debt-servicing capacity. Traditional agencies such as S&P, Moody's and Fitch combine quantitative analysis with qualitative judgement, industry outlooks, sovereign risk, and rating committee decisions. WVB scores provide an independent measure of fundamental financial strength, making them an excellent tool for credit analysis, due diligence, and investment research.

Q: How does the WVB Credit Risk methodology differ from Basel II Probability of Default models?

The WVB Credit Risk Score assesses overall financial strength and debt-servicing ability, whereas Basel II focuses on estimating Probability of Default (PD), Loss Given Default (LGD), and Exposure at Default (EAD) for regulatory capital. WVB evaluates financial fundamentals rather than directly estimating default probabilities, making it a valuable complement to Basel II credit risk frameworks.

Q: Can private companies be analysed?

Yes. WVB provides financial intelligence and Credit Risk Scores for both public and private companies across global markets.

Q: Can Credit Risk Scores be integrated into internal systems?

Yes. WVB data can be delivered through online platform access and data feed solutions, supporting integration into enterprise workflows including credit management systems, risk platforms, and internal databases.

Q: How often are Credit Risk Scores updated?

The methodology incorporates periodic financial updates together with quarterly yield curve adjustments to reflect changing market expectations and prevailing economic conditions.

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
75,000+ Active Publicly Listed Companies
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 a Credit Risk Score?

A Credit Risk Score is a quantitative assessment of a company's financial strength and its ability to meet financial obligations.

2 What factors influence the WVB Credit Risk Score?

The score evaluates five core financial characteristics:

. Company Size
. Risk-Adjusted Return
. Long-Term Debt
. Adjusted Total Liabilities
. Investments in Unconsolidated Subsidiaries

3 Does WVB rate corporate bonds?

No. WVB evaluates the overall financial strength of a company rather than assigning ratings to individual debt issues. The score represents the company's creditworthiness on a senior-debt equivalent basis.

4 Why doesn't the WVB Credit Risk Score always match S&P, Moody's or Fitch ratings?

The WVB Credit Risk Score is based on a transparent, quantitative methodology that evaluates a company's underlying financial strength using key indicators such as profitability, leverage, capital structure and debt-servicing capacity. While this provides an objective assessment of corporate creditworthiness, traditional credit rating agencies such as S&P Global, Moody's and Fitch use broader methodologies that combine quantitative analysis with qualitative judgement, industry outlooks, sovereign risk, management assessments and rating committee decisions.

As a result, WVB ratings should not be expected to replicate agency credit ratings. Instead, they provide an independent measure of a company's fundamental financial strength, making them an excellent tool for credit analysis, due diligence, investment research and corporate risk assessment.

5 How does the WVB Credit Risk methodology differ from Basel II Probability of Default models?

The WVB Credit Risk Score is designed to assess a company's overall financial strength and ability to service its debt obligations, whereas Basel II regulatory frameworks primarily focus on estimating Probability of Default (PD), Loss Given Default (LGD) and Exposure at Default (EAD) for regulatory capital calculations.

Traditional agency ratings are often used within Basel II models as inputs for estimating expected credit losses. In contrast, WVB evaluates the financial fundamentals that drive corporate creditworthiness rather than directly estimating default probabilities or expected loss rates. This makes the WVB Credit Risk Score a valuable complement to Basel II credit risk frameworks, providing transparent insight into the underlying financial condition of a business while supporting broader credit risk management and lending decisions.

6 Can private companies be analysed?

Yes. WVB provides financial intelligence for both public and private companies across global markets.

7 Can Credit Risk Scores be integrated into internal systems?

Yes. WVB data can be delivered through online platform access and data feed solutions, supporting integration into enterprise workflows.*

8 How often are Credit Risk Scores updated?

The methodology incorporates periodic financial updates together with quarterly yield curve adjustments to reflect changing market expectations.