Karma Progress 24.Sep-02.Oct. Working Fiat Banking and Detailed Borrowers' Rating
Hello, dear friends!
What Have Been Delivered?
First of all we’ve updated legal documents according to Russian law between borrower and investor and improved their automatic generation.
When investor would like to accept an offer he or she will get a full preliminary document with all necessary data.
We’ve added a tool for work with guarantors (front-end and back office parts). Now investor before making the decision could see and download the surety agreement offer.
The final test of bank connection SOAP interface have been completed.
It helps to:
- Track cash flows between accounts of investor and borrower on the Karma platform in real time automatically.
- Make an automatic payments from borrower account to investor’s account.
All new investments and investors will be displayed on the progress bar of every bid.
A Detailed Explanation on Borrowers' Rating
Some of our subscribes asked to clarify the meaning of rating values which we announced in previous post. So, let's get started!
ААА — Maximum safety level.
High capacity to fulfill debt obligations completely and on time.
АА — High safety level.
Strong security factors. High capacity to fulfill debt obligations completely and on time. The risk level is moderate, but it can change according to economic environment.
А — The safety level is above average.
The protection factors are not very strong, but quite effective. Medium high capacity to fulfill debt obligations completely and on time. Greater sensitivity to the impact of negative changes in commercial, financial and economic conditions.
ВВВ — The safety level is below average.
The protection factors are below average, but it is sufficient for circumspect investments. Adequate capacity to fulfill debt obligations completely and on time, but at the same time there is a high sensitivity to the impact of negative changes in commercial, financial and economic conditions.
ВВ — Speculative level (Not investment).
It is below the level of safe investment, however, principal liabilities are sufficiently protected. There is practically no strong credit quality decline risk in the short term, but there is high sensitivity to the impact of negative changes in commercial, financial and economic conditions. Delays of interest payments and principal of a loan are possible.
В — High speculative level.
It is below the level of safe investment, there is a risk default. The level of financial protection greatly depends on the stage of economic development. There is a higher sensitivity to negative commercial, financial and economic conditions. At the moment, the principal and interest redemption is likely, but it is possible that negative economic situation will lead to a delay in payments. Frequent increase or decrease in the rating may happen.
ССС — Significant risk level, the rating object is hard pressed.
It is significantly below the investment level. There is a great uncertainty whether the principal and interest redemption will be effected on time, or only favorable combination of circumstances will allow to settle the debt on time. By an unlucky train of events, there is a possible suspension of payments.
СС — Super speculative level.
Very low level of credit quality. At the present time, there is a high probability of object’s noncompliance to the rating of debt obligations, payment refusal is possible.
C — Regular delays in principal or interest repayment.
Very low level of credit quality. Bankruptcy procedure or a similar action has been taken with respect to the rating object, but payments or debt obligations accomplishment are still ongoing. Timely debt obligations accomplishment is very unlikely without attracting additional sources of credit quality.
D — Refusal of payment(default).
Principal or interest payments are overdue at the moment.
Cheers ^_^
