Municipality scoring
A couple of months ago, Loanboox and the independent Swiss credit rating institute Independent Credit-View (I-CV) launched a new service:
Investors can access a municipality score calculated by I-CV directly on Loanboox, for almost all public authorities. This simplifies the credit check process even further. Municipality scoring is available by subscription. The scoring is not as detailed as a rating, but is sufficient for many investors in this area. The municipality score is intended to give investors a first indication of the financial situation of the municipality in question and thus support them in selecting adequate borrowers. The score represents one of the three pillars in the evaluation process of a municipal rating: Financial profile, location indicators and the canton’s support of the municipality. The comprehensive analysis can also be obtained directly from I-CV at any time.
Many investors have asked us if we could also offer a simplified credit check option without buying a rating directly. We have followed this request and have now launched the municipality score together with I-CV. Investors are happy with this new opportunity.
Andi Burri, Managing Director Loanboox Switzerland.
How does the municipality score work?
The municipality score is a quantitative value derived from the financial ratios of the respective municipality. The scoring model developed by I-CV uses a broad spectrum of factors, in particular financial ratios relating to debt, interest charges and self-financing rate. The factors are individually weighted on the basis of a scoring table defined by rating specialists and thus lead to an overall score, the municipality score. The score is therefore a purely quantitative value and takes neither qualitative nor location-specific factors into account, which in combination with the assessment of the financial ratios are included in a credit rating.
What is the subscription needed for and for whom is it suitable?
Thanks to the municipality score subscription, an investor can view the scoring of I-CV directly on Loanboox with nearly all inquiries of public-sector authorities. The service is available to all interested investors who are Loanboox members. It is particularly suitable for investors who internally do not have a standardized procedure for the first estimate of the credit quality of municipalities and cities. Also the administrative expenditures are strongly reduced, since investors do not have to compile data anymore or maintain a model, they can use the expertise of the I-CV specialists to do that.
How is the municipality score displayed?
The municipality score is displayed for all open inquiries in the offer overview (see picture below) and also in the detailed view of each individual inquiry.
How much does the municipality score subscription cost?
- Pro: CHF 750 per quarter, municipality score including financial ratios validated by I-CV
You have your own verification mechanism, but you want to have validated financial ratios so that you can make your calculations easily and on a solid basis? Then the “Light” package is just right for you:
- Light: CHF 600 per quarter for financial ratios validated by I-CV (without municipality score subscription)
To give you a first impression of whether such a subscription might be helpful for you:
Test the municipality score including financial ratios validated by I-CV for free until the end of June.
How do I get to the municipality score subscription
You can directly order it in your profile, subsection subscriptions.
Or you can contact us, by email info@loanboox.ch or call us at any time: 055 220 78 20.
For more detailed analysis you can of course still order the detailed I-CV Rating with one click.
We look forward to hearing from you.
