Every schoolchild knows the problem: grades of the teacher may be too high or too low, too good or too bad. While the students complain about too low grades, from the teacher’s point of view, the diligence of the students lessened when the grades are too high. There are problems with every rating system. Also in credit assessments judgments can turn out to be too good or too bad. Rating repairs are therefore services to correct ratings.
Rating repair enables consumers to correct errors and inaccurate information in their credit reports and to boost their score. In compliance with laws protecting consumers, there are self-help, consumer or professional software products which guide the consumer through the complexities of credit scoring models, credit score simulation, loan qualification, and automate the process by generating letters for disputing errors and negotiating with creditors and tracking progress.
Ratings allow organizations such as industrial companies and local authorities to borrow. The required ratings are determined by independent rating agencies or by the lenders themselves. Based on the ratings, the amount of the loan, the interest and conditions are determined. Too bad a rating blocks debtors from accessing the financial market. Therefore, rating repair is needed to correct a bad rating.
Those raters who create ratings always run the risk of rating too good or too bad. For lenders too good ratings mean that they give too many loans to bad debtors. Conversely, bad ratings lead to missing business opportunities and wrongly rejecting debtors. Rating repair is aimed at avoiding too high and too low ratings, and just hit the right middle.
RATING EVIDENCE supports ownership positions in companies involved in rating activities, working with the boards and management teams of those institutions to maintain sustainable growth and increase their long-term competitiveness, thereby creating real value for all stakeholders. RATING EVIDENCE generally looks for sound business models in the rating industry that either promise to maintain clear market leadership positions or are overlooked, misunderstood, or in its early stages. It works in a hands-on and constructive manner to realize value-enhancement potential in operations, institutional strategy, organizational structure, corporate governance, focused marketing and professional communication. Rating advisory, rating agency, rating technology and rating repair are tagging our interests. Contact us if you are working on any of these or related topics.