In Section 3 we show how an internal rating system in a bank can be organized in order to rate
credThe main problem faced by banks is obtaining information about companies that have not issued traded debt instruments. The data about these companies are of unproven quality and are therefore less reliable, and it can be a challenge to extract the minimum required information in order to improve the allocation of credit.itors systematically. It should again be emphasized that while this system is based on the extensive experience of a commercial bank, it is not based on any normative model. Other banks may have somewhat different systems, but most are of a similar nature. In Sections 5 to 7 the details of the rating process and considerations are described.