How Do I Interpret An Lloyd's MIU Credit Rating ?
Lloyd's MIU bases a credit rating on 5 criteria:
Annual Sales (Size) Scale (1-6)
- 1
- $500 million+
- 2
- $100 - 500m
- 3
- $50 - 100m
- 4
- $20-50m
- 5
- $5 -20m
- 6
- Under $5m
Company Financial Condition Rating (1-6)
- 1
- First Rate
- 2
- Good
- 3
- Satisfactory
- 4
- Some Concern
- 5
- Weak/ Strained
- 6
- Severe
- Z
- In Liquidation, Receivership, Chapter XI
Company Payment Performance Rating (1-6)
- 1
- First Rate
- 2
- Good
- 3
- Satisfactory
- 4
- Some Concern
- 5
- Weak
- 6
- Poor
Credit Guideline (AAA - J)
| Exposure Range (US$) | Normal Limit | |
|---|---|---|
| AAA | Low eight figures and above | Above $10m |
| AA | Mid to high seven figures | Below $10m |
| A | Low to mid seven figures | Below $5m |
| B | Low seven figures | $1.25m |
| C | High six figures | $750,000 |
| D | Mid six figures | $400,000 |
| E | Low six figures | $200,000 |
| F | High five figures | $100,000 |
| G | Mid five figures | $50,000 |
| H | Low five figures | $25,000 |
| I | Credit a matter of trust in principal | See text |
| J | Secured or cash terms only |
Overall Risk Rating (Fifth Rating) (1-10)
| Risk of dealing with the company | Typical company performance in market | |
|---|---|---|
| 1 | Negligible risk | Extremely strong |
| 2 | Very Low risk | Strong |
| 3 | Low risk | Firm |
| 4 | Below average risk | Satisfactory |
| 5 | Average risk | Adequate |
| 6 | Moderate risk | Vulnerable |
| 7 | Moderate to high risk | Weakened |
| 8 | High risk | Under pressure |
| 9 | Very high risk | Severe duress |
| 10 | Extreme risk | On the verge of collapse / bankruptcy |
Additional Factors
- MLG
- Member of Large Group
- SC
- State Controlled
- ID
- Insufficient Data
- NC
- New Company
- PG
- Parental Guarantee Advised
- RE
- Refer to Your Experience
- SS
- Special Situation, see report text
- EST
- Estimated
Important Note: Ratings and guidelines are valid at the date of issue of the report only.
They are provided under our published terms of business and made in good faith.
Under no circumstance are they intended to be definitive judgements of the standing or worth of the company in question, nor are they to be used as sole basis or in substitution for the exercise of your own judgement in deciding whether and in which way to trade with the subject.
This rating guideline was last updated on 16 February 2006
