Internal rating and scoring model in the function of an improved assessment of the credit standing of firms

This paper analyzes the impact of internal rating and scoring model with the aim of assessing the credit solvency of firms during the process of bank crediting and the assessment of the future repayment behavior. The bank assesses the credit risk based on the qualitative and quantitative criteria taking into consideration certain characteristics of firms, thus ensuringa clear ranking withinan appropriate risk category according to the collection rate. The internal rating represents a starting point for determining the credit risk rate of firms and a check of credit solvency, whereas scoring is a system of assigning points, the sum of which shows the quantitative value of the probability of delay in credit repayment. It will be shown in the papers that the combination of qualitative and quantitative criteria, while developing the internal rating and scoring of firms, is aimed at an improved assessment of credit standing, which reduces.