A predetermined model is used to evaluate the solvency and potential for failure of corporations seeking credit. It involves evaluating various criteria to determine the probability of default and uses regression analysis to project how changes in variables will affect the borrower’s ability to meet obligations. The model considers the borrower’s financial condition, industry, and […]

A predetermined model is used to evaluate solvency and potential for failure in corporations seeking credit. It considers various variables and uses regression analysis to determine the probability of default. The model also considers the borrower’s financial condition, industry, and future projections. A predetermined model is a medium to evaluate solvency and the potential for […]