—Credit rating agencies specializes in analyzing and
evaluating the creditworthiness of large corporate and issuers
of debt securities. In the new financial architecture, credit
rating agencies are expected to become more important in the
management of both corporate and credit risk. Their role is
limited to the large scale companies and multi corporations.
Credit Rating Agencies focus was never on Small and Medium
Enterprises where credit worthiness related information
asymmetry is too large. On the other hand banks also
handicapped by not having robust comprehensive models. To
bridge the gap this research attempt has been made to provide
solutions to the small and medium enterprises and banks.
—Credit Rating, Discriminant Analysis, SMEs’,
Economic Cycles, Business Cycle.
Srinvas Gumparthi, SSN School of Management & Computer
Dr. V.Manickavasagam, Professor & Controller of Examinations,
Department of Corporate Secretaryship, Alagappa University,Karaikudi,
Cite:Srinvas Gumparthi and Dr. V.Manickavasagam, "RISK CLASSIFICATION BASED ONDISCRIMINANT ANALYSIS FOR SMES’," International Journal of Trade, Economics and Finance vol.1, no.3, pp. 242-246, 2010.