AJPES introduced a new AJPES S.BON credit rating model for Slovenian companies, which complies with Basel II rules. Determining credit rating scores under this model is based on analysing financial statements and occurrence of payment default events for the entire population of Slovenian companies over a longer period of time. Based on financial statements, individual risk factors for the potential occurrence of a payment default event are analysed (profitability, liquidity, indebtedness, activity and productivity) and their contribution to the total probability of the potential occurrence of a payment default event. With AJPES S.BON model, the overall probability of a payment default event is calculated for a period of 12 months, which serves as a basis for determining credit ratings.
 

 

The AJPES S.BON model classifies Slovenian companies into 10 credit rating classes according to the credit risk, represented by credit rating scores of SB1 to SB10. The credit rating scores are defined on a scale of probability that at least one of the different types of payment default events will occur in a specific case (suspension of a bank account for 30 days without interruption, suspension of a bank account for 60 days with interruptions, bankruptcy, winding-up, compulsory settlement, compulsory winding-up) in the following 12-month period after the date of the relevant financial statements upon which the credit rating is based. The first 9 credit ratings (SB1 through SB9) represent categories of payers, and the last credit rating (SB10) represents the non-payer category (credit rating scale). The probability of the occurrence of a potential payment default event is lowest with the credit rating of SB1, increasing exponentially as we move towards the credit rating of SB10. More information about the AJPES S.BON and more detailed descriptions of the credit ratings can be found in methodology ( Method for assessment of companies credit rating-AJPES S.BON model.pdf, 823 kB).