The CreditMapper

The CreditMapper is an analytical tool which provides guidance in assessing the creditworthiness of a company/entity and assistance for investment decisions. The CreditMapper generally requires less detailed knowledge on the part of the user, consistent with the information that is available and observable to the market, while accommodating qualitative input from the user. This allows the credit assessments to be produced in a shorter time and with considerably less effort. The CreditMapper, when augmented with fundamental credit analysis, offers a more complete/holistic approach for credit assessment. The model is not intended to substitute the fundamental credit rating analysis employed by the rating agencies, which are typically based on publicly available information as well as non-public information.

In addition to quantitative financial information, the CreditMapper also captures the user’s qualitative input on an entity’s management, its competitive position, and the risk inherent in its industry to produce scoring that ranges from CM-1 to CM-16. The user retains discretion on the weight that is to be applied to subjective information on an entity in the credit assessment. Different combinations of weights may be applied to quantitative and qualitative information to produce the final assessments. The CM scoring is an indication of an entity’s credit strength; derived from the various analysis applied by the CreditMapper.

What does the scoring mean?

CM Scoring Scoring Reference Risk Profile
1.00 Extremely strong credit strength with minimal non-repayment risk
CM-2 1.25 Very strong credit strength with exceptionally low non-repayment risk
CM-3 1.50 Very strong credit strength with very low non-repayment risk
CM-4 1.75 Very strong credit strength with low non-repayment risk
CM-5 2.00 Strong credit strength with low non-repayment risk
CM-6 2.25 Strong credit strength with moderate to low non-repayment risk
CM-7 2.50 Strong credit strength with moderate non-repayment risk
CM-8 2.75 Moderate credit strength with moderate non-repayment risk vulnerable to adverse market condition
CM-9 3.00 Moderate credit strength with medium non-repayment risk vulnerable to adverse market condition
CM-10 3.25 Moderate credit strength with medium to moderately high non-repayment risk
CM-11 3.50 Weak credit strength with moderately high non-repayment risk
CM-12 3.75 Weak credit strength with high non-repayment risk
CM-13 4.00 Weak credit strength with very high non-repayment risk
CM-14 4.25 Very Weak credit strength with moderately high non-repayment risk
CM-15 4.50 Very Weak credit strength with potential to default
CM-16 4.75 Very Weak credit strength with high potential to default


What is the CreditMapper’s quantitative approach?

The quantitative approach applies statistical methods including standard deviation, percentile and regression analysis on empirical data pool(s) to assess credit risk. This technical approach produces consistent and stable outputs omitting the human emotional element of the fundamental credit analysis. Under the CreditMapper, there are two sets of data pool: Bursa Malaysia universe and MARC universe for which the assessee will be benchmarked against. The users may adjust the data pool under the “Benchmark Selection” page to yield a better benchmarking comparison.

What is the CreditMapper’s qualitative approach?

The qualitative approach applies four factors, namely industry risk, market position, competitive position and management qualitative factors in gauging credit quality. The qualitative approach is to complete the aspects that are difficult to quantify via technical analysis under the quantitative approach. Users are required to provide inputs and individual judgements under this approach.

------------------------------------------------------------- Disclaimer -------------------------------------------------------------

The CreditMapper is the property of MARC. The information is correct at the time of posting and maybe change from time to time without prior notice. All information contained herein shall not be copied or otherwise reproduced, repackaged, transmitted, transferred, disseminated, redistributed or resold for any purpose, in whole or in part, in any form or manner, or by any means or person without MARC’s prior written consent. The information which MARC relies upon to provide the analysis includes publicly availabale and confidentially provided information obtained from Bursa Malaysia through Thomson Reuters and MARC’s internal database. MARC assumes no obligation to undertake independent verification of any information it receives and does not guarantee the accuracy, completeness and timeliness of such information. MARC AND/OR ITS DIRECTORS, AGENTS, OFFICERS, AFFILIATES, SUBSIDIARIES AND EMPLOYEES DISCLAIM ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO ANY WARRANTY AS TO THE ACCURACY OR COMPLETENESS, MERCHANTIBILITY OR FITNESS OF ANY INFORMATION CONTAINED HEREIN FOR ANY PARTICULAR PURPOSE AND SHALL NOT IN ANY EVENT BE HELD RESPONSIBLE FOR ANY DAMAGES, DIRECT OR INDIRECT, CONSEQUENTIAL OR COMPENSATORY, ARISING OUT OF THE USE OF SUCH INFORMATION. Any person making use of and/or relying on this CreditMapper and information contained therein solely assumes the risk in making use of and/or relying on all information contained therein and acknowledges that this disclaimer has been read and understood and agrees to be bound by it. CreditMapper is not a recommendation to buy, sell or hold any security and/or investment or any product and service. Any user shall not rely solely on the rating and analysis contained herein to make an investment decision in as much as it does not address non-credit risks, the adequacy of market price, suitability of any security for a particular investor, or the tax-exempt nature or taxability of payments made in respect to any security concerned. MARC may make modifications to and/or amendments the CreditMapper including information contained therein at any time as it deems appropriate. MARC uses reasonable efforts to ensure that CreditMapper is made available to users. However, MARC does not warrant or represent that the information contained therein shall be provided continuously or in an uninterrupted manner or that it shall be free from any defect and that no viruses of any kind or variant whatsoever or other destructive properties shall be transmitted or that no damage shall occur to your computer or to the computer you are accessing the CreditMapper from.