Bond Spectrum

Check our Whitepaper for a detailed explanation.

Traditional credit ratings often fail to give a fair score to emerging market firms due to biases and the “sovereign ceiling” constraint, which caps corporate ratings at the country’s sovereign rating.

To better assess emerging market corporate bonds, we developed the Bond Spectrum Model, based on Edward Altman’s modified Z-Score model. This model, known as the Emerging Market Score (EMS), uses tailored financial metrics and coefficients to evaluate bankruptcy risk specific to these markets.

Color Rating

We offer an innovative approach to credit ratings by establishing a color-rated system. This system is designed to be more user-friendly by simplifying complex letter-rated systems. The color spectrum corresponds to numbers between 0-100 by assigning color ratings to grade intervals.