tailieunhanh - Credit Rating Methodology

Three different statistical models were used to assess differences in scores between minority and low-income individuals, as opposed to residents of high minority or low- income areas (not all of whom, of course, are minorities or poor). Based on the most credible of the three models, African-American and Hispanic insureds had scores in the worst credit score group at a rate of about 30 percentage points higher than did other individuals (for example, where 30 percent of one group may have poor scores, compared to 60 percent of another group). A gap of 30 percentage. | MnRNINGSir Credit Rating Methodology November 2009 MnRNINGGfF 1 Contents Overview of Business Risk Assessing Financial Modeling Cash The Morningstar Credit Components of our Credit The Cash Flow Cushion .9 Debt Refinancing Assessment within the Cash Flow Cushion .12 Business Risk Country Company Morningstar Solvency Distance to Structural Assigning Long-Term Issuer Credit Mapping Scores to Preliminary Credit Procedures for Assigning Final Issuer Credit Rating Assignment for Debt Issuers with Estimated Time to Appendix A Morningstar Solvency Score Model Appendix B Appendix C Regulatory Score for Morningstar s Standard Adjustments to Key Credit-Relevant Ratios for Non-Financial Definition of Credit Balance Sheet Cash Liquidity and MORNINGSTAR 2 Contributors Joel Bloomer Associate Director - Consumer Heather Brilliant CFA Director - Securities Research Vahid Fathi Director - Quantitative Equity Research Adam Fleck Senior Analyst - Industrials Brett Horn Associate Director - Business Services Haywood Kelly CFA Vice President Securities Research Travis Miller Senior Analyst - Energy Warren Miller Senior Quantitative Analyst Brian Nelson CFA Director of Methodology and Training Catherine Odelbo President Securities Research Josh Peters CFA Strategist Dan Rohr CFA Senior Analyst Matthew Warren Associate Director - Banks MnRNINGGfF