The probability of default table is an analysis tool that helps set the internal acceptance criteria to assess company credit policy and risk.
The highlighted row has a cumulative score range of 41-100 and a score range of 41-45, which is used as an example below.
- At the Rating of 41 and above, 87.8 percent of the accounts are accepted.
- Delinquency rate is 0.25 for the entire portfolio.
Rating Range Statistics
- The rating range of 41-45 represents 7.8% of all accounts.
- The delinquency rate is 0.79% for this rating range.
In this Rating range, there are 127 good companies for every delinquent company.