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Economic Analysis: Theory and Practice
 

Methodological approaches to assessing the creditworthiness of corporate-issuer geological exploration organizations

Vol. 14, Iss. 39, OCTOBER 2015

PDF  Article PDF Version

Received: 21 May 2015

Received in revised form: 5 June 2015

Accepted: 21 September 2015

Available online: 25 October 2015

Subject Heading: INVESTMENT ANALYSIS

JEL Classification: 

Pages: 21-31

Zaernyuk V.M. Russian State Geological Prospecting University named after Sergo Ordzhonikidzе, Moscow, Russian Federation
zvm4651@mail.ru

Nazarova Z.M. Russian State Geological Prospecting University named after Sergo Ordzhonikidzе, Moscow, Russian Federation
nazarovazm@inbox.ru

Yastrebinskii M.A. National University of Science and Technology MISiS, Moscow, Russian Federation
ma-yastreb@mail.ru

Subject The article examines the specifics of methodology for assessing the creditworthiness of exploration companies acting as issuers in the securities market.
     Objectives The aim is to create a methodological framework for assessing the creditworthiness of exploration companies operating in the stock markets as issuers.
     Methods Theoretical and methodological approaches rest on the analysis and synthesis of the scientific knowledge in the area under consideration. The technique is based on determining the key performance indicators of exploration organizations within the qualitative and quantitative analysis. We apply ranking on the grounds of the issuer's financial condition aggravation, which is characterized by a change in the key performance indicators.
     Results We offer an approach to assess the creditworthiness of corporate issuers. The approach includes a theoretical and methodological basis and the methodology for credit rating, which is an integrated feature of credit risk associated with the issuer that reflects the likelihood of untimely or incomplete discharge of obligations by the issuer. We formulate the limits of possible values of the analyzed factors of the quantitative analysis and the distribution of the factors to assess the financial condition of the issuer.
     Conclusions and Relevance The proposed methodological approach may be useful for the study of macroeconomic parameters of the industry.

Keywords: geological exploration organizations, credit rating, qualitative analysis, quantitative analysis, issuer

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