METHODS OF DETERMINING THE ENTITY’S RATING IN THE FINANCIAL STABILITY ANALYSIS

Abstract

Financial stability analysis cannot provide a complete exercise without identifying the possibilities for quantitative measurement of this phenomenon. In the present article, we intended to present the methods of determining the rating of the entities that can be used to measure the financial stability, emphasizing at the same time the limits of each of these methods. This approach has helped us to demonstrate that there is no „best practice” for evaluation of the stability, but rather a complementarity of these techniques.

Keywords

• financial stability
• credit scoring method
• methods of multidimensional rating
• discriminant analysis