We are preparing for the launch of a Bondora Rating that would be used to estimate risk of loan applications and would like to give you an early preview of the upcoming change.
The model used for calculating the Rating accounts for market specific levels of probability of default, exposure at default and recovery rates; thus, incorporating country risk into the Bondora Rating. We believe that standardized credit rating and pricing mechanism will make investing across markets much easier for investors.
Testing and validation of the Rating have been completed for Estonia, Finland and Spain, and we aim to fully validate it for Slovakia soon.
Once the Rating is rolled out and accepted by investors, the platform will move away from current risk segments; however, the data that is used to calculate current segments will remain available.
We are aiming to launch the Bondora Rating in November, but we would like to ensure you that we will provide additional information in the upcoming newsletters and allow for sufficient time to get familiar with the Bondora Rating before we roll it out on the platform.