Default Study
NCR has also conducted default study for the clients rated during the period from the year 2017 to year 2022. Default study is carried out to see whether any issuer has default i.e. has gone down to the level of ‘D’ category. While conducting the default study NCR has used cohort method to calculate the performance of entities rated across various rating categories. Cumulative Default Rate (CDR) is calculated for each cohort within the period of study. The CDR is calculated over one-year, two-year and three-year’ time horizons to evaluate the performance of ratings over varying periods. Then, the issuer weighted average for one-year, two-year and three-year CDR is computed to arrive at long term CDR for each category. As ratings are a measure of probability of default, a higher rating given to an entity implies lower credit risk.
Default study for the clients rated during the period from the year 2017 to year 2022.
|
|
Year-1 |
Year-2 |
Year-3 |
|||
|
Rating Category |
Avg. No. of Issuer |
CDR (%) |
Avg. No. of Issuer |
CDR (%) |
Avg. No. of Issuer |
CDR (%) |
|
AAA |
2 |
0.00% |
2 |
0% |
2 |
0% |
|
AA+ |
13 |
0.00% |
13 |
0% |
14 |
0% |
|
AA |
19 |
0.00% |
18 |
0% |
17 |
0% |
|
AA- |
22 |
0.00% |
21 |
0% |
19 |
0% |
|
A+ |
69 |
0.00% |
66 |
0% |
67 |
0% |
|
A |
111 |
0.00% |
110 |
0% |
113 |
0% |
|
A- |
175 |
0.00% |
176 |
0% |
185 |
0% |
|
BBB+ |
257 |
0.00% |
257 |
0% |
261 |
0% |
|
BBB |
312 |
0.00% |
328 |
0% |
341 |
0% |
|
BBB- |
62 |
0.00% |
63 |
0% |
66 |
0% |
|
BB+ |
11 |
0.00% |
11 |
0% |
11 |
0% |
|
BB |
5 |
0.00% |
5 |
0% |
5 |
0% |
|
BB- |
3 |
0.00% |
3 |
0% |
4 |
0% |
|
B+ |
1 |
0.00% |
1 |
0% |
1 |
0% |
|
B |
1 |
0.00% |
1 |
0% |
1 |
0% |
|
B- |
0 |
0.00% |
1 |
0% |
1 |
0% |
|
C |
1 |
0.00% |
1 |
0% |
1 |
0% |
|
Total |
1064 |
|
1077 |
|
1108 |
|
From the above table it can be stated that NCR has no CDR over one-year, two-year and three-year time horizons.
|
Disclaimer: The Methodology is developed by National Credit Ratings Limited (NCRL) based on data/information from secondary reliable sources which is in compliance with the guidelines provided by Bangladesh Securities and Exchange Commission and Bangladesh Bank. NCRL puts best efforts to prepare this document. The methodology may inherit human error, technical and/or systematic error as its limitation. Therefore, NCRL does not provide warranty of any kind for this document. This is the property of NCRL and is only used for rating of corporate issues. None of the information in this document can be copied or otherwise reproduced, stored or disseminated in whole or in part in any form or by any means whatsoever by any person without written consent of NCRL. |
For further details please contact:
National Credit Ratings Ltd.
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37/2, Box Culvert Road, Purana Paltan
Dhaka-1000
Tel: +88-02-47120156-58
e-mail: ncrlbd10@yahoo.com, info@ncrbd.com
website: www.ncrbd.com