The MORE model

The Multi Objective Rating Evaluation (MORE) model is essentially used to assess the level of economic-financial quality of a given company by using financial statements data.

The idea underlying the MORE model is to analyze in detail a series of economic and financial indicators to assess the fundamentals of the company and assign accordingly the final rating as accurate as possible.

The vision of the MORE methodology is to observe the economic and financial fundamentals of a company, evaluating every aspect of the analyzed company to determine the balance of the different characteristics. The main idea of the MORE evaluation is that the company must be balanced in each of its aspects: the better the economic and financial equilibrium, the better the rating.

General vision

A Credit Score is an evaluation on the financial and economic quality of a company, observing and studying its major risk factors.
The Multi Objective Rating Evaluation (MORE) model assesses the level of economic-financial quality of a given company, using as reference the data included in the financial statements.
The core idea behind the MORE model is to thoroughly analyze a series of economic and financial indicators in order to assess the company's fundamentals and assign the most accurate possible Credit Score accordingly.

The final Credit Score  is evaluated using a variety of innovative numerical methodologies, integrated with the most modern economic and financial theories, in order to give an assessment of the credit risk that is as coherent and transparent as possible.
The technologic core of the model MORE is a multi-dimensional and multi-objective algorithm that aggregates in a coherent way the various aspects (quantitative, qualitative, economic and financial) of the company in question.

The MORE vision is to look at the economic and financial fundamentals of the company. The main idea is to evaluate the rating observing every aspect of the economic and financial behavior of the company: the better the equilibrium between the different aspects, the better the final rating. This is done by studying, evaluating and aggregating the most important sections of the financial and economic behavior of a company such as: profitability, liquidity, solvency, interest coverage and efficiency, etc.

Please note that the measure of creditworthiness included in modefinance's s-peek is not a "credit rating" as defined in accordance with the EU Regulation N. 1060/2009.

MORE credit limit

How do we calculate the commercial credit limit of the companies?

MORE credit limit is the estimation of the amount of maximum credit that is possible to assign on a commercial relationship with the analyzed company with an outlook of one year.
modeFinance used the following values associated with the company analyzed while computing the credit limit:

• Size.
• Years in Business.
• Average number of suppliers.
• The funds dedicated to be paid to suppliers.
• Liquidity of the company and the comparison with its sector.
• The likelihood that a company may pay its debts in the next 12 months (MORE Score).

The value stated in this report is only a suggested value of commercial credit calculated on the basis of public data; it is advisable to revise the amount expressed taking into account the Confidence Level value and correcting it with other business information and private information, such as the relationship and experiences with the client, history of payments, guarantees, industry experiences, etc.

MORE rating: validation

Every day we check the accuracy of the MORE model in the most scientific way possible, so as to ensure that our customers are always assured that our assessment is as reliable as possible.