ABSTRACT
Obscure implications It is an elementary tenet of business economics that every profit-oriented enterprise will use bank credit of some kind. As we shall see later, not to do so would imply an irrational sacrifice of profit potential and, hence, managerial incompetence. It is more than likely, therefore, that your firm will, sooner rather than later, be due for a Basel II rating of some kind. It is equally likely that contemplating the prospect two questions will be foremost in your mind: • What specific information will your bankers require for the rating? • What precisely can you do to ensure the most favourable outcome?
