Frequently Asked Questions

How is the credit rating of countries, companies, and organizations or the risk of securities determined?

Rating-index.com has developed several mathematical methods that reliably determine the most current credit rating of counties, companies, and organizations as well as the risk of different securities based on investor behavior. Due to our unique, standard method that is applied to each value, no elements of personal evaluation or subjective bias are included in this determination. The table shows the classification of credit rating.

How are the credit rating codes determined?

The procedures for determining the credit rating are based on the observed returns from issued securities. The rate of return shows the expected yield to capital market participants who are willing to take the risk of investment. In this way, investors evaluate the future prospects and credit rating of countries and companies. The credit rating codes determined and assigned by rating-index.com reflect the rating valuations made by capital markets on a daily basis.

Detailed description of the credit rating methodology.

How are the credit rating codes composed?

The credit rating codes and consequently the risk statements will be represented in a combination of letters and figures. The rating definition begins with «AAA 99» as the bettest possible rating and is opened to the lower end. Each rating class from «AAA» to «D» is devided into one hundred steps by figures. For ratings below the rating class «D» figures with the negative sign are used. The table shows the classification of credit rating.

What is expressed by the risk index (Ri-Index, abbr.: Ri-x)?

The calculated value for each "Ri-x" indicates how high the actual risk of investing in a particular security is. The higher the "Ri-x," the greater the risk and the associated opportunities underlying the respective security.

Why is the measurement of investor reactions particularly suitable for indicating current risks?

Expectations of future performance are traded on stock exchanges. Investors react immediately on the stock market in response to any and all accessible information regarding changes in prices. The extent of the change in price and the reaction of market participants is determined by the relevance of the information reported. Measuring the extent and intensity of these numerous changes leads to an objective and accurate basis upon which to establish both plausible and current risk assessments to the highest degree possible.

Why are accurate risk assessments and their ongoing development important for an investor?

In order to make appropriate investment decisions, it is important to be informed about the risk profile of an investment not just at the time of a purchase decision but rather throughout the entire period of investment. The risk profile of an investment or portfolio may change continuously. rating-index.com informs investors about current risk profiles and provides them with support for their own portfolios via the monitoring-assistant.