Probability of Default

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.

Cumulative Statistics

• 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.