Measuring Credit Risk: Does Complexity Matter?(Report‪)‬

ABSTRACT This paper examines the issue of how to measure a company's ability to meet its external financing commitments. Success in this area is critical for businesses extending credit and is a topic of considerable interest yet with varied coverage in classrooms and business training rooms. A major component is finding an appropriate metric with which to evaluate the creditworthiness of borrowers. Given the level of importance placed on the topic in the world of credit and in academia, one finds a plethora of approaches with little consensus among them.