The StarMine Private Company SmartRatios Credit Risk Model (PCSRCR) is an intuitive and robust default prediction model that provides a view of a private company’s credit condition and financial health by analyzing a wide array of accounting ratios that are predictive of credit risk. The model produces estimates of the probability of default or bankruptcy within 1 year for over 600K private companies globally, including ﬁnancials. The default probabilities are also mapped to letter grades and ranked to produce 1-100 percentile scores.
The Private Company SmartRatios Model takes fundamental data as inputs from the ﬁnancial statements of private companies. It outputs a Probability of Default by analyzing accounting ratios that are predictive of credit risk.