am
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15561
Sept 9, 2015 9:52:43 GMT
Post by am on Sept 9, 2015 9:52:43 GMT
Anyone have any ideas why this property development loan is an A rather than an A+?
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grahamg
Member of DD Central
Posts: 220
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15561
Sept 9, 2015 12:53:09 GMT
Post by grahamg on Sept 9, 2015 12:53:09 GMT
No idea and a probably a waste of time asking as you will just get a stock answer like below. In general the rating system is not to be trusted, lots of A+ and A loans i would not go near. Maybe its computer generated no humans involved !
Thank you for your email. We have a team of experienced underwriters, who evaluate credit risk of each business and decline the ones that pose high risk. Their decision is based on:
· Financials submitted by the borrower
· Financials purchased from several credit bureaus
· Personal guarantees / asset security
· Consumer credit profile of the company directors
· (if applicable) previous history with the borrower
Additionally, we score each borrower using our proprietary credit risk models which analyses over 3,000 different factors and recommends an ‘approve/reject’ decision as well as a risk band (A+,A,B,C, C-) for approved borrowers. We continue to maintain a conservative risk management process and our underwriters’ manual assessment of each case may uncover additional qualitative risk elements which may override the model recommendation in order to maintain the pristine creditworthiness of the book. We have a full time credit risk analyst who is constantly honing and developing our credit risk model as we grow as a business.
We do not offer a loan to any business if we do not believe they are capable of making their contractual repayments.
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15561
Sept 9, 2015 12:59:21 GMT
Post by nickthefool on Sept 9, 2015 12:59:21 GMT
Don't know what differentiates them specifically, but it's not the first - there's plenty of A rated property loans.
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am
Posts: 1,495
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15561
Sept 9, 2015 13:05:13 GMT
Post by am on Sept 9, 2015 13:05:13 GMT
Don't know what differentiates them specifically, but it's not the first - there's plenty of A rated property loans. If my impression is correct, most of the A rated property loans have been bridging loans, rather than a property development loan like 15561.
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adrianc
Member of DD Central
Posts: 10,014
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15561
Sept 9, 2015 13:17:19 GMT
Post by adrianc on Sept 9, 2015 13:17:19 GMT
No idea and a probably a waste of time asking as you will just get a stock answer like below. Somebody's actually asked on the Q+A page, and had an even blander answer than that. Q. 8 Sep 2015 15:35 - I notice that FC have rated this as an A grade loan application rather than an A+ as has tended to be the norm. Is there any specific reason why? A. 9 Sep 2015 09:48 - FC Comment: FC's Risk Grading for this particular transaction deems it to be classified as an A grade. Thanks FC So that's a "Because it is"... Hey-ho. It's filled. That's all that matters, really.
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15561
Sept 9, 2015 13:24:41 GMT
Post by nickthefool on Sept 9, 2015 13:24:41 GMT
Don't know what differentiates them specifically, but it's not the first - there's plenty of A rated property loans. If my impression is correct, most of the A rated property loans have been bridging loans, rather than a property development loan like 15561. Sorry, comprehension fail on my part. However, 12087 and 14871 both seem to be A-rated property development loans.
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jonah
Member of DD Central
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15561
Sept 9, 2015 13:43:56 GMT
Post by jonah on Sept 9, 2015 13:43:56 GMT
Anyone have any ideas why this property development loan is an A rather than an A+? Magic 8 ball says...
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grahamg
Member of DD Central
Posts: 220
Likes: 62
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15561
Sept 9, 2015 16:05:52 GMT
Post by grahamg on Sept 9, 2015 16:05:52 GMT
Anyone have any ideas why this property development loan is an A rather than an A+? Actually try working out why 15606 is an A+ having looked at accounts.
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acky
Posts: 481
Likes: 262
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15561
Sept 9, 2015 17:00:44 GMT
Post by acky on Sept 9, 2015 17:00:44 GMT
Anyone have any ideas why this property development loan is an A rather than an A+? Actually try working out why 15606 is an A+ having looked at accounts. 15606 A+? Probably 'cos it's a small loan and only 24 months. But I'm with you, wouldn't go near it at the rate it will go to, being rated as A+.
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