Create a secondary credit rating table

Create a secondary credit rating table

Secondary credit ratings are a lower level subset of the primary credit ratings and are used by the finance company to control the risk based pricing to a lower level. 

A finance company can have many secondary credit rating tables with different effective dates. Many secondary credit ratings can be assigned to one primary credit rating allowing the business to refine the ratings for credit and pricing purposes without affecting what is presented to the investors and borrowers.

Secondary credit rating tables are setup against the finance company and linked to the product via the originator group product settings business rule. Users will only be able to view and edit the details for the finance companies they have access i.e. determined by ownership group.

NOTE : In order for a user to create a secondary credit rating table, a primary credit rating table must be created first. For the instructions on how to create a primary credit rating table, refer to this article.    
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1. Login to Clearmatch Fusion with the relevant credentials:



2. Navigate to Configuration > Setup:



3. Select the  Secondary Credit Rating Tables  option under  Decisioning :



4. Click on the cross/plus icon    to add a new secondary credit rating table ensuring that the following details are entered:

Finance Company: A drop down list of the available finance companies that the new credit rating table will be applied to.
Primary Credit Rating Table:   A drop down list of the available primary credit rating tables to choose from.
Name: Enter a name to call the credit rating table.



Click on the  button to continue with creating the new table or the  button to return back to the Secondary Credit Rating Table screen.

5. Once redirected to the List Secondary Credit Rating Tables screen, click on the In Use check box   to successfully remove the tick, as it will display the credit rating table that was just created.

Select that secondary credit rating table:



6. Click on the Actions Panel   > Functions > Add new Secondary Credit Rating:  



7. Enter all of the relevant details for the secondary credit ratings:

Primary Credit Rating - a drop down list of active primary credit ratings.
Rating Name - a specific name for the credit rating NOTE :  The most common industry ratings are AAA, AA, A,B, C, D, E, and F. Also each credit rating has to be created with its own parameters. 
Credit Rating Colour - a drop down list of available credit rating colours   NOTE : the colour is used to display the credit rating on the portal.
Minimum Score  - This is the minimum amount for a score. If a score on an application is between the minimum and maximum score the application will be assigned the credit rating. 
Maximum Score  - This is the maximum amount for a score. Once again, if a score on an application is between the minimum and maximum score the application will be assigned the credit rating. 
Minimum Bid Rate  - This is the minimum bid rate that investors can bid on applications with the credit rating. 
Maximum Bid Rate  - This is the maximum bid rate that investors can bid on applications with the credit rating. 
Minimum Token Bid Rate  - This is the minimum token bid rate.
Maximum Token Bid Rate  - This is the maximum token bid rate.   
Surplus Buffer Amount   - This buffer will be used in the surplus calculation allowing business to deflate or inflate the surplus per credit grade.



Click on the  button to create the new secondary credit ratings or the  button to return back to the Display Secondary Credit Rating Table screen.

8. After successfully creating the secondary credit rating table, follow the steps outlined in this article to activate the table (by adding it to the product settings business rule).

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