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Showing posts from February 14, 2022

CENTRAL ALABAMA BANCSHARES, INC. Assigned Short-Term Ba1 & Long-Term Ba1 Credit Rating

Likewise, we do not consider factoring programs under sources of liquidity. Unlike asset-based lending (ABL) facilities, factoring is more of a sales transaction and not a loan. In addition, these transactions tend to be very short term. For this reason, we would not consider them a committed source of future liquidity over a 12-month period.CENTRAL ALABAMA BANCSHARES, INC. Assigned Short-Term Ba1 & Long-Term Ba1 Credit Rating. How Does Credit Rating Model Work? Rating Model for CENTRAL ALABAMA BANCSHARES, INC.: We estimate the credit risk parameters by Momentum and ANOVA Credit Ratings for CENTRAL ALABAMA BANCSHARES, INC. as of 15 Feb 2022 Credit Rating Short-Term Long-Term Senior AI Rating Class* Ba1 Ba1 Semantic Signals 71 75 Financial Signals 70 89 Risk Signals 71 69 Substantial Risks 65 35 Speculative Signals 78 88 *Machine Learning utilizes multiple learning algorithms to obtain better predictive powers. In our research, we utilize machine learning

Smith & Wesson Holding Corporation Assigned Short-Term B3 & Long-Term Ba3 Credit Rating

In addition, a speculative-grade company's access to the credit markets during times of stress, such as the financial crisis, is often a function of the capital market's appetite for risk. Accordingly, it would be rare that we would characterize a speculative-grade company as having a generally high standing in the credit markets, and even low-investment-grade companies may not have access to a diversity of funding sources required for this assessment.Smith & Wesson Holding Corporation Assigned Short-Term B3 & Long-Term Ba3 Credit Rating. How Does Credit Rating Model Work? Rating Model for Smith & Wesson Holding Corporation: We estimate the credit risk parameters by Sustainability and Spearman Correlation Credit Ratings for Smith & Wesson Holding Corporation as of 15 Feb 2022 Credit Rating Short-Term Long-Term Senior AI Rating Class* B3 Ba3 Semantic Signals 47 65 Financial Signals 43 81 Risk Signals 68 88 Substantial Risks 57 38 Specula

LI Group Holdings, Inc. Assigned Short-Term B1 & Long-Term B1 Credit Rating

In this scenario, we would still include the existing debt maturity as a use of liquidity in our A/B and A-B calculations, if the debt matures within the corresponding liquidity horizon. The rationale is that our liquidity assessment is essentially a stress test against a sudden and severe loss of capital markets access availability. For companies with an anchor of at least 'bbb-' that meet certain characteristics, as outlined in paragraphs 38 and 39 of the criteria, we may use a shorter three- to six-month time horizon when assessing upcoming maturities.LI Group Holdings, Inc. Assigned Short-Term B1 & Long-Term B1 Credit Rating. How Does Credit Rating Model Work? Rating Model for LI Group Holdings, Inc.: We estimate the credit risk parameters by Average True Range (ATR) and Lasso Regression Credit Ratings for LI Group Holdings, Inc. as of 15 Feb 2022 Credit Rating Short-Term Long-Term Senior AI Rating Class* B1 B1 Semantic Signals 45 74 Financial Sig

PNC Infratech Limited Assigned Short-Term Ba1 & Long-Term B1 Credit Rating

If we believe a company would use cash trapped at a foreign subsidiary to meet debt maturities or other liquidity uses at that foreign subsidiary, we would include this cash as a source of liquidity up to the amount of the corresponding use. We generally haircut the cash to be included under sources when a material proportion of a group's cash is held in a different part of the structure than where the debt is located, and we believe the cash may not be fully fungible within the group.PNC Infratech Limited Assigned Short-Term Ba1 & Long-Term B1 Credit Rating. How Does Credit Rating Model Work? Rating Model for PNC Infratech Limited: We estimate the credit risk parameters by Expectation and Polynomial Regression Credit Ratings for PNC Infratech Limited as of 15 Feb 2022 Credit Rating Short-Term Long-Term Senior AI Rating Class* Ba1 B1 Semantic Signals 76 82 Financial Signals 86 42 Risk Signals 81 45 Substantial Risks 42 76 Speculative Signals 76 51 *M

APPLIED BANK Assigned Short-Term Ba3 & Long-Term B2 Credit Rating

We do not assume future debt refinancing or the rolling over of CP, regardless of the company's perceived credit strength or issuer credit rating. For instance, even for investment-grade issuers, we do not assume future debt maturities are refinanced with potential uncommitted capital raises. We could, however, consider a shorter time horizon.APPLIED BANK Assigned Short-Term Ba3 & Long-Term B2 Credit Rating. How Does Credit Rating Model Work? Rating Model for APPLIED BANK: We estimate the credit risk parameters by Relative Strength Index (RSI) and Independent T-Test Credit Ratings for APPLIED BANK as of 15 Feb 2022 Credit Rating Short-Term Long-Term Senior AI Rating Class* Ba3 B2 Semantic Signals 32 50 Financial Signals 86 41 Risk Signals 48 60 Substantial Risks 87 71 Speculative Signals 82 31 *Machine Learning utilizes multiple learning algorithms to obtain better predictive powers. In our research, we utilize machine learning to combine the results

Callon Petroleum Company Common Stock Assigned Short-Term Ba3 & Long-Term B1 Credit Rating

For example, if a company incurred a large working capital inflow in the fourth quarter, which more than offset working capital outflows during the first three quarters, we would use the peak working capital outflows within our A/B and A-B calculation. However, we avoid double-counting when the working capital outflow is already captured through our assumption of peak CP amount.Callon Petroleum Company Common Stock Assigned Short-Term Ba3 & Long-Term B1 Credit Rating. How Does Credit Rating Model Work? Rating Model for Callon Petroleum Company Common Stock: We estimate the credit risk parameters by OCL and Pearson Correlation Credit Ratings for Callon Petroleum Company Common Stock as of 15 Feb 2022 Credit Rating Short-Term Long-Term Senior AI Rating Class* Ba3 B1 Semantic Signals 81 53 Financial Signals 56 54 Risk Signals 72 74 Substantial Risks 40 74 Speculative Signals 85 43 *Machine Learning utilizes multiple learning algorithms to obtain better pred

Citadel Wellington LLC Assigned Short-Term Baa2 & Long-Term Ba3 Credit Rating

For companies that engage in reverse factoring--where accounts payable (AP) days are extended beyond the term customary for the industry and supply chain--we assess the likelihood and potential impact on liquidity of these arrangements ceasing to exist. In such a scenario, a company could be subject to material working capital outflows if AP days with its suppliers revert back to industry norms. Accordingly, we exclude these arrangements from sources of liquidity.Citadel Wellington LLC Assigned Short-Term Baa2 & Long-Term Ba3 Credit Rating. How Does Credit Rating Model Work? Rating Model for Citadel Wellington LLC: We estimate the credit risk parameters by Price and Beta Credit Ratings for Citadel Wellington LLC as of 15 Feb 2022 Credit Rating Short-Term Long-Term Senior AI Rating Class* Baa2 Ba3 Semantic Signals 86 80 Financial Signals 79 39 Risk Signals 69 70 Substantial Risks 50 71 Speculative Signals 87 65 *Machine Learning utilizes multiple learning

LKA Gold Inc Assigned Short-Term Ba3 & Long-Term Ba3 Credit Rating

We believe that when a company is viewed as being on the cusp between two liquidity descriptors and has higher-than-average cash plus inventory/unadjusted debt compared with similarly constituted peers, that helps support the better liquidity assessment. However, in the case of a nonresidential developer, given that its inventory is typically less liquid (and the greater potential for inventory to suffer value erosion in a downturn), we do not consider this measure as pertinent.LKA Gold Inc Assigned Short-Term Ba3 & Long-Term Ba3 Credit Rating. How Does Credit Rating Model Work? Rating Model for LKA Gold Inc: We estimate the credit risk parameters by Volume + Moving Average and ElasticNet Regression Credit Ratings for LKA Gold Inc as of 15 Feb 2022 Credit Rating Short-Term Long-Term Senior AI Rating Class* Ba3 Ba3 Semantic Signals 47 42 Financial Signals 75 31 Risk Signals 81 89 Substantial Risks 38 76 Speculative Signals 81 84 *Machine Learning utilizes

Quad Graphics, Inc Class A Common Stock Assigned Short-Term Baa2 & Long-Term B1 Credit Rating

Our view of a company's financial policy is an important input when assessing its current and future liquidity position. For instance, we assess whether a company has historically had a higher risk appetite and an aggressive acquisition strategy that has strained its liquidity position, or whether it has taken actions to preserve liquidity in past downturns.Quad Graphics, Inc Class A Common Stock Assigned Short-Term Baa2 & Long-Term B1 Credit Rating. How Does Credit Rating Model Work? Rating Model for Quad Graphics, Inc Class A Common Stock: We estimate the credit risk parameters by Ring Oscillators and Logistic Regression Credit Ratings for Quad Graphics, Inc Class A Common Stock as of 15 Feb 2022 Credit Rating Short-Term Long-Term Senior AI Rating Class* Baa2 B1 Semantic Signals 71 46 Financial Signals 86 49 Risk Signals 75 41 Substantial Risks 57 65 Speculative Signals 90 82 *Machine Learning utilizes multiple learning algorithms to obtain better

Lincoln Educational Services Corporation Assigned Short-Term B1 & Long-Term Ba2 Credit Rating

Other factors we consider include a company's frequency of debt issuance and market access, especially during times of company-specific stress or credit market turbulence.Lincoln Educational Services Corporation Assigned Short-Term B1 & Long-Term Ba2 Credit Rating. How Does Credit Rating Model Work? Rating Model for Lincoln Educational Services Corporation: We estimate the credit risk parameters by Pierce Oscillators and ElasticNet Regression Credit Ratings for Lincoln Educational Services Corporation as of 15 Feb 2022 Credit Rating Short-Term Long-Term Senior AI Rating Class* B1 Ba2 Semantic Signals 31 90 Financial Signals 60 34 Risk Signals 58 80 Substantial Risks 72 44 Speculative Signals 84 86 *Machine Learning utilizes multiple learning algorithms to obtain better predictive powers. In our research, we utilize machine learning to combine the results from the Neural Network and Support Vector Machines.Take a look at: How Does Credit Rating Model

Zhengzhou Real Estate Group Co., Ltd. Assigned Short-Term B1 & Long-Term B1 Credit Rating

In these cases, the level of capital expenditures will be lower than estimates in our base-case forecast to determine an issuer's financial risk profile, particularly for companies that are pursuing discrete growth projects that have not been committed or can be easily curtailed in case of a need to preserve cash.Zhengzhou Real Estate Group Co., Ltd. Assigned Short-Term B1 & Long-Term B1 Credit Rating. How Does Credit Rating Model Work? Rating Model for Zhengzhou Real Estate Group Co., Ltd.: We estimate the credit risk parameters by Aroon and Ridge Regression Credit Ratings for Zhengzhou Real Estate Group Co., Ltd. as of 15 Feb 2022 Credit Rating Short-Term Long-Term Senior AI Rating Class* B1 B1 Semantic Signals 34 58 Financial Signals 77 43 Risk Signals 49 86 Substantial Risks 51 48 Speculative Signals 88 61 *Machine Learning utilizes multiple learning algorithms to obtain better predictive powers. In our research, we utilize machine learning to co

LM Funding America Inc Assigned Short-Term Ba2 & Long-Term B1 Credit Rating

In these cases, the level of capital expenditures will be lower than estimates in our base-case forecast to determine an issuer's financial risk profile, particularly for companies that are pursuing discrete growth projects that have not been committed or can be easily curtailed in case of a need to preserve cash.LM Funding America Inc Assigned Short-Term Ba2 & Long-Term B1 Credit Rating. How Does Credit Rating Model Work? Rating Model for LM Funding America Inc: We estimate the credit risk parameters by Adaptive Moving Average and ElasticNet Regression Credit Ratings for LM Funding America Inc as of 15 Feb 2022 Credit Rating Short-Term Long-Term Senior AI Rating Class* Ba2 B1 Semantic Signals 70 39 Financial Signals 74 83 Risk Signals 88 70 Substantial Risks 54 63 Speculative Signals 59 48 *Machine Learning utilizes multiple learning algorithms to obtain better predictive powers. In our research, we utilize machine learning to combine the results fr

Longzhou Group Co Ltd Assigned Short-Term B1 & Long-Term B2 Credit Rating

When calculating sources of liquidity, we only include the undrawn, available portion of committed bank lines maturing beyond the specified time horizon for each liquidity descriptor. For example, when assessing liquidity as adequate, we only include a committed revolving credit facility as a source if it matured beyond the next 12 months. Similarly, given that our liquidity assessment looks out over two years when assessing liquidity as strong or exceptional, we only include a facility maturing beyond 24 months as a source of liquidity.Longzhou Group Co Ltd Assigned Short-Term B1 & Long-Term B2 Credit Rating. How Does Credit Rating Model Work? Rating Model for Longzhou Group Co Ltd: We estimate the credit risk parameters by Exponential Moving Average (EMA) and ElasticNet Regression Credit Ratings for Longzhou Group Co Ltd as of 15 Feb 2022 Credit Rating Short-Term Long-Term Senior AI Rating Class* B1 B2 Semantic Signals 62 64 Financial Signals 59 68 Risk Si