MODELING THE RATING OF ENERGY COMPANIES

ANDONE Diana , Babeș-Bolyai University Cluj-Napoca

FATACEAN Gheorghe , Babeș-Bolyai University Cluj-Napoca

MINTEUAN Paul , Babeș-Bolyai University Cluj-Napoca

Abstract:
The methods of bankruptcy risk measure the past performance of the economic entity, informing the managers in a small proportion on its future. Financial results can rapidly degrade over time because of the economic environment. As a reaction to these practical requirements, the diagnosis of the default risk was developed with statistic methods based on the financial ratios. The aggregate rating model which we built is based on credit - scoring methods, banking methods and an own model based on financial ratios. Then we tested the aggregate model on the energy companies CNTEE TRANSELECTRICA SA and ENEL SpA based on multiple financial criteria, we found that our model is similar with Moody's, Standard & Poor's and Fitch models.

Keywords: Rating, Scoring, Liquidity, Bankruptcy

JEL Classification: G32, G33

Volume: 69, Issue: 3

Pages: 8 - 18

Publication date: August, 2017

Download the article: http://economice.ulbsibiu.ro/revista.economica/archive/69301andone&fatacean&minteuan.pdf

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