Funding and Green Projects Evaluation
MuniFin
Copyright MuniFin
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Appendix 2
MuniFin's credit assessment and credit
granting process
Annual credit assessment
Credit granting process
Decision making
.
MuniFin conducts an annual assessment of
the ability of its customers to meet their
future obligations.
The assessment covers both economic and
qualitative factors, including indicators of
solvency, debt-servicing capacity and
profitability. For municipality customers, the
municipal evaluation criteria of the Ministry
of Finance is taken into account.
As a result of the annual assessment,
MuniFin will have a view of a customer's
current risk position.
•
•
MuniFin's credit granting process is carried
out by the account manager, who will
estimate whether a customer and a financing
request will fulfill requirements of the Act on
the Municipal Guarantee Board and
MuniFin's credit risk strategy.
As a part of the credit granting process
MuniFin will conduct a credit analysis
covering both financial and qualitative factors
of the borrower. Factors include for example
current, historical and future repayment
capacity, purpose of the credit, borrower's
funding structure, borrower's position within
the sector, the outlook of borrower's industry
and risks posed by macro-economic
development.
→The final risk assessment and scoring of a
customer is the weighted sum of financial
and qualitative factors
•
The results of both the annual credit
assessment and the credit granting process
indicate the risk profile of a customer and will
influence the final credit decision.View entire presentation