The evolution of rating systems
Over time, rating functions have grown with the development of risk management. As De Laurentis and Maino (2010) state, the rating struggles to make compatible purposes “that are often misalignment and even opposed, resulting in the risk of distortions in system development and applications”.
It follows that an instrument now indispensable to define the evaluation profiles of companies and customers such as the bank rating must be constantly updated. In this perspective, the study of the algorithm from which the credit merit originates (according to the Standardized Approach and Internal Ratings-Based Approach) to be assigned to entities approaching credit must receive continuous attention from the economic-business doctrine, with the aim of configuring a useful tool both to the complete evaluation of companies and to guarantee the parties involved in the bank-enterprise relationship. The measures to reform the regulatory architecture (Basel 3 and, even earlier, Basel 2) deal with the issue of assessing the credit worthiness of enterprises with the aim of ensuring the stability of the banking system and the bank-to-business relationship.
The refinement of quantitative and trend information as well as the acceptance of intangible dimensions (reputation, image, trust, etc.) in the rating model suggest some changes in the relationship between bank and business and ethics and finance that need new studies and continuous insights