Main Capital adopts a dynamic credit assessment system based on ratings and expected default probabilities of Borrowers / Issuers within each rating band.
The rating system is borrowed from Standard & Poor’s and recalibrated to be applicable to the universe of SMEs.
Main Capital adopts advanced, rigorous, multiple, complete, dynamic and tested credit analysis & control methodologies as well as processes that allow, inter alia:
an accurate assessment of the creditworthiness of the Borrower / Issuer (historical and current data analysis) also with the adoption of "alternative data analysis“ techniques based on "big data" from digital environments;
the assessment of the sustainability of the debt contracted (projective analysis);
high temporal frequency monitoring of the Borrower’s credit parameters over the life of the investment (dynamic analysis / primary credit monitoring);
real-time identification of events that may have an impact on creditworthiness and debt serviceability (supplementary monitoring / "big data" monitoring);
the identification of any "early warning signs" (advanced red flagging system) which in the short, medium or long term could have an impact on the servicing of debt through sector and peer analyses (predictive analysis);
independent monitoring of the Investment Portfolio to determine its fair value and any pending write-downs, revaluations, revisions of ratings of individual positions, etc. (portfolio analysis).