Until today, rating has not been a science. In fact, rating agencies themselves claim that ratings are opinions. When all calculations are done, it is always down to the subjective judgement of an expert. Our ratings are science, not opinions. Numbers, not sensations. Our ratings are fully automatic. And fast.
In a turbulent economy, resistance to shocks is the new key reflection of the sustainability of a corporation or an investment portfolio. In fact our ratings go beyond the concept of Probability of Default (PoD) - we measure the so-called shock-worthiness: the ability to absorb and withstand shocks and volatility. Basically, UR computes a Resistance to Shocks Rating (RtS) Rating.
Since the global economy changes quickly, our rating goes beyond the concept of a 'static rating', computed, say, on an annual basis. We offer dynamic ratings which track the evolution of markets. Since in a turbulent and shock-dominated economy a static rating becomes obsolete very quickly, we focus on identifying rating gradients and trends, which reflect the involved and complex dynamics of the global financial system.
Universal Ratings also offers innovative ratings of systemic risks. In fact, we rate systems of thousands of stocks, portfolios, funds, corporations, banks. We use supercomputers to take the concept of systemic risk rating to a totally new level, providing truly holistic and strategic information to the global investor.
Universal Ratings provides an independent, transparent and objective rating system which has been engineered specifically for a complex economy. Our goal is to help global and institutional investors seek sustainability and preserve wealth in a highly turbulent and uncertain context. Science, not opinions.
Complexity is a new and powerful indicator that quantifies the degree of sophistication and governability of a business and which impacts its sustainability. In the presence of excessive complexity exposure increases and it is more difficult to make forecasts of business performance. Universal Ratings offers unique complexity measures of stocks, ETFs, bonds, futures, options, portfolios, funds, indices, corporations or countries, providing early-warning signals of increased exposure.
Resistance to Shocks
Sometimes known as resilience, 'shock-worthiness' is the capacity to absorb shocks or destabilizing events, such as financial contagion, stock market collapses, market bubbles, natural disasters or geopolitical events. Shock-worthiness provides an indication of how stable a portfolio or market is and how it will react to the said events. We rate the Resistance to Shocks of portfolios, funds, systems of assets or corporations, providing early-warning signals of increased fragility.
Sustainability is defined as long-term and sustained capacity to withstand shocks, turbulence, market instability and disruptive or destabilizing events. Universal Ratings offers unique sustainability measures of portfolios, funds, corporations or countries or systems thereof.