ABSTRACT

If you are seeking access to equity or finance from a bank or bank-related institution, your company will need a Basel II rating. How does the Basel II Rating differ from previous credit ratings? What specific information will your bankers require for the rating? What can you do to ensure the most favourable outcome? Unfortunately there is no mathematical or scientific solution to these questions. Approval of your request will largely depend on your ability to provide not simply the relevant information, but a tactically effective line of argument. If you under-represent your project, even if it does not fail the rating test outright, it is likely to get it assigned to a grade below its merit. The penalty is reflected in the conditions of the desired facility, especially, the rate of interest. Marc B. Lambrecht's The Basel II Rating shows you what information to assemble and exactly how to make your case in order to maximise your rating results. His book will help you argue the success potential of your business; accurately define the financial basis on which that success can be realised; and present your credentials convincingly. Follow the framework, use the advice and the techniques he suggests and you will make a convincing case for your business and the value and risk of the project for which you are seeking finance. This book can help you ensure continued access to business finance and equity on the best possible commercial terms.

chapter 1|6 pages

Introduction

part |2 pages

PART I Basel II Overview: More Questions than Answers

chapter 2|2 pages

Objectives and History

chapter 3|8 pages

New Rules and the Consequences

chapter 4|6 pages

In Search of Guidance

chapter 5|6 pages

Confronting the Raters

part |2 pages

PART II Passing the Test: Step One – Defining Your Business Strategy

chapter 6|6 pages

The Task Outlined

chapter 7|4 pages

The Elements of Your Strategy

chapter 9|4 pages

Your Strategic Portfolio

chapter 10|20 pages

Rating Your Prospects

chapter 11|12 pages

Strategic Consequences

part |2 pages

PART III Passing the Test: Step Two – Drawing the Financial Conclusions

chapter 12|4 pages

The Task Outlined

chapter 13|6 pages

Accounts: The Conventional Framework

chapter 15|6 pages

Instruments of Financial Navigation

chapter 16|36 pages

A Rational Look at Your Financial Future

part |2 pages

PART IV Passing the Test: Step Three – Presenting Your Credentials

chapter 18|14 pages

Conclusive Statements of Value and Risk

chapter 19|10 pages

Financial Competence and Risk Control

part |2 pages

PART V Appendix: A Document for All Occasions