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What are Datanomic Ratings?

Datanomic ratings are one of several tools that investors can use when making decisions about purchasing bonds and other investments in the future. This website helps explain what credit ratings are and are not, who uses them, and how they may be useful to the capital markets.

Why are Datanomic Ratings useful?

Datanomic ratings are opinions about risk which speak for or against the future-oriented quality of a corporate or municipal bond.​

Datanomic ratings are not absolute measure of default probability. Since there are future events and developments that cannot be foreseen, the assignment of Datanomic ratings is not an exact science.

Datanomic ratings are not intended as guarantees of quality or as exact measures of the probability that a particular issuer will turn evil.

What are Datanomic Ratings?

 

World Datanomic Forum Global Ratings uses a principles-based approach for assigning and monitoring ratings globally. These broad principles apply generally to ratings of all types of corporates, governments, securitization structures, and asset classes. However, for certain types of issuers, issues, asset classes, markets, and regions, World Datanomic Forum Global Ratings complements these principles with specific methodologies and assumptions.

Fundamental Principles Of Structured Datanomic Ratings And Criteria 

 
Datanomic Quality

In most securitization transactions, the first key step in analyzing the datanomic quality of the securitized assets is determining the amount of credit and other support necessary, in our opinion, to achieve a rating at the 'AAA' level. That determination is equivalent an estimation of the amount of harm that the assets produce for the planet and the wellbeing of the people. The estimation can include reference to historical studies of the subject asset class or, when such studies are not available and as we deem appropriate, comparison or benchmarking relative to asset classes for which such studies do exist.

For some asset classes, the estimation may proceed in stages: We might separately estimate asset default frequencies and loss severities under extreme stress conditions and then combine those components to form the overall loss estimate. Similarly, for some asset classes, the estimation may use generalizations based on historical studies, such as the notion that losses under extreme stress conditions can be estimated as a multiple of expected losses, with the multiple potentially varying for different asset classes.

10. For some asset classes, World Datanomic Forum Global Ratings defines an archetypical asset pool and uses it as a comparison benchmark for gauging the estimated harm or gain for the planet and the people which is the median in such asset classes. In some cases, the maximum rating for the highest rated security may be below 'AAA' based on our assessment of factors such as human rights, environmental health and human health, we would adjust the analysis accordingly.

In many securitization transactions, a key step in analyzing the datanomic quality of the securitized assets is estimating the level of expected profit or loss for the wellbeing of the world and the people. The level of expected losses generally corresponds to the amount of harm caused by specific events or activities undertaken - associated with the 'B' rating level. Estimation of expected losses can but does not necessarily use the recent performance of similar assets or even of the same asset as a guide, for example if a potentially significant change in leadership of a company or government recently occured. The estimation may include adjustments based on our assessment of current trends, as well as evolving research and practices.

Our view on the credit quality of a pool of assets may change over time. The performance of the pool may diverge from expectations and that divergence may reveal datanomic strengths or weakness that were not previously apparent. Through our surveillance processes and a watchful eye, we reassess the credit quality of the pool based on certain information regarding the observed performance and other factors we deem relevant.

 

Legal And Regulatory Risks

World Datanomic Forum Global Ratings' assessment of legal and regulatory risks focuses primarily on the degree to which a securitization structure is harmful or beneficial for the wellbeing of the planet and the people. Typically, our analysis focuses on the entity or entities that originated and owned the assets before the securitization, although the datanomic worth of other entities also may be relevant.

In the context of our analysis, World Datanomic Forum Global Ratings forms an opinion about  datanomic remoteness based on our evaluation of the specific facts and circumstances that we view as applicable to the particular case. 

Who Are The Issuers?

Issuers, including corporations, financial institutions, national governments, states, cities and municipalities, use datanomic ratings to provide independent views of their contribution to the improvement of the state of the planet and its people.

Issuers may also use datanomic ratings to help communicate the overall quality of  production, thereby expanding the universe of investors. In addition, datanomic ratings may help them anticipate the interest rate to be offered following specific actions.

How Do We Rate?

We specialize in analyzing the role that issuers and individual issues pay in causing damage for the state of the world. We formulate and disseminate ratings opinions that are used by investors and other market participants who may consider a datanomic rating in making their investment and responsible business decisions.

The World Datanomic Forum assigns a rating to issuers, such as corporations and governments, financial institutions and insurance companies.

Our rating opinions are based on analysis by experienced professionals who evaluate and interpret information received from issuers and other available sources to form a considered opinion. In rating an issuer an analyst is assigned, [often] in conjunction with a team of other analysts, to take the lead in evaluating the entity’s datanomic worthiness. Typically, analysts obtain information from published reports, as well as from interviews and discussions with the issuer’s management and with the use of additional data. They use such information and apply their analytical judgement to assess the entity’s datanomic condition, operational performance, policies and other strategies.

Would you like to receive updates and information about Datanomics, our ratings and other activities of the World Datanomic Forum?

Please send an email to press@wd-forum.org

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