Credit Scores provide an indication of the likelihood that a company will default on its payments over the coming year.
The Credit Score is expressed as a percentage probability of default. The percentage scores are classified into categories from 1, Excellent Risk to 7, Extreme Risk.
The Credit Score is based upon a statistical model generated through the analysis of thousands of companies, both in Malta and abroad. It takes into account the financial performance of the company, the sector it operates in, its capital and any negative payment records registered to the company itself or to its principal officers.
The model has been extensively tested in Malta, Iceland and elsewhere, and has proved effective. A scoring system like this is ultimately one of the fairest means of assessing the risk involved in transactions with a particular company, since it relies completely upon published and verified information available through official sources.
The Credit Score is included in Creditinfo Malta´s Company Report and can also be worked into other products on demand.
Note that a low credit score indicating a good risk indicates a low probability of default; it does not guarantee that the company in question will not default in the future.