(Ebook) Ratings: Critical Analysis and New Approaches of Quantitative and Qualitative Methodology by Peter Brusov, Tatiana Filatova, Natali Orekhova ISBN 9783030562427, 3030562425

(Ebook) Ratings: Critical Analysis and New Approaches of Quantitative and Qualitative Methodology by Peter Brusov, Tatiana Filatova, Natali Orekhova ISBN 9783030562427, 3030562425

The monograph develops new modern methodologies for rating of non-financial
issuers and of project ratings based on the use of the modern theory of capital cost
and capital structure (BFO theory—Brusov–Filatova–Orekhova theory) and of its
two perpetuity limits (Modigliani–Miller theory (MM theory) and the modified
Modigliani–Miller theory (MMM theory)), as well as modern investment models
created by the authors.
In order to modify and improve existing rating methods to increase the objectivityand correctness of rating estimates, the monograph critically analyzes the methodological
and systemic shortcomings of the existing credit rating of non-financial
issuers and project rating. The modern theory of capital cost and capital structure
(BFO theory) for companies of arbitrary age and its two perpetuity limits
(Modigliani–Miller theory and modified Modigliani–Miller theory) have been modified
for rating needs. The incorporation of financial ratios used in the rating
methodology was carried out both in the BFO theory and in its perpetuity limits:
in the Modigliani–Miller theory and in the modified Modigliani–Miller theory. A
fundamentally new approach to the rating methodology has been developed, which
includes the adequate application of discounting, which is practically not used in
existing rating methodologies, when discounting the financial flows; the use of rating
parameters under discounting of financial flows; and the correct determination of
discount rates taking into account the financial ratios.
This book is intended for managers and analysts of rating agencies, students, both
undergraduate and postgraduate, students of MBA program, teachers of economic
and financial universities, students of MBA program, scientists, financial analysts,
financial directors of company, managers of insurance companies, officials of
regional and federal ministries and departments, and ministers responsible for
economic and financial management