Subject The article addresses certain aspects of credit quality assessment of corporate borrowers being a part of a holding. Objectives The purpose of the study is to analyze domestic and foreign ideas of a holding, clarify the holding concept, propose criteria for incorporating a company into a holding, and establish the nature of influence of a group of companies on the borrower. Methods Using the descriptive analysis of domestic laws, we prove the need for formalizing the notion of a holding. Results Having considered the criteria of assigning corporate borrowers to the holding category, we identified a number of companies being a part of a corporate group. We emphasize that participation in a holding has a strong impact on the credit quality of each structure affiliated with it. The findings may be useful for teaching and learning activities and the banking practice for assessing the credit quality of corporate borrowers. Conclusions The works of local authors, the Russian legislation, and our findings may serve as a basis for formulating the criteria to assign corporate borrowers to the holding category. We explain the nature of influence of a corporate group on the borrower, thus providing a basis for further analysis of financial condition of a company affiliated with a holding.
Keywords: financial position, corporate group, group of companies, credit quality, corporate borrower
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