MOUNT AIRY, Md. – Kroll Bond Rating Agency, a new company billing itself as an alternative to traditional Wall Street rating agencies, introduced a new methodology for rating credit unions yesterday.
Kroll said the central feature of the new rating methodology is a revised statistical scoring system that was designed to improve the transparency of Kroll’s ratings and enhance ratings accuracy. The new scoring system was developed following an analysis of credit union failures over an 11-year period with a view towards identifying those credit union characteristics most predictive of failure. The company said the new system generates a score for each credit union. This score then is converted into a rating, which is analyzed by Kroll and published on its subscription rating service.
The new methodology, Credit Union Rating Methodology – A New Financial Strength Model, is available at
Kroll, founded in 2010, currently rates 7,000 banks, 1,000 companies, and 52 insurance companies.
