Managing a Deal Risk Rating

You can assign and update the deal risk rating from the deal overview and settings page. Deal risk rating is an assessment of the potential risks a capital provider is exposed to associated with a Deal. The risk factors vary according to the type of loan, the borrower's industry, and the overall economic environment. 

The deal risk rating is measured on a scale defined by the Office of the Comptroller of the Currency (OCC) with Special Mention, Substandard, Doubtful, and Loss identifying deteriorating degrees of credit weakness. Credits that are not covered by these definitions are “pass” credits, for which no formal regulatory definition exists. Lenders often adopt a modified version of the OCC scale or translate to a numerical standard of 1-8 or 1-10 with higher ratings indicating higher risk.

Note: When managing Deal Risk Ratings, ensure that:

• Full access permission is provided to the Deal Management:

• Portfolio Page & Deal Creation

• Deal Details

• Deal Overview

• Capital Stack

• A deal is created.

• Field configurations of deal risk rating are set.

To set-up deal risk rating, perform the following steps.

1.

At the top-left of the page, click Portfolio.

2.

On the Portfolio page, click Deal ID or click View for the deal.

3.

On the left navigation menu, click Settings.

4.

On the Settings page, in the Deal Details section, click Edit.

5.

In the Deal Risk Rating drop-down, select the required option.

6.

Click Save.

The Deal Details section is displayed where the selected Deal Risk Rating is displayed.