modeFinance rating: the right tool to comprehend the financial strengths of New Europe companies.

1. modeFinance rating: the right tool to
comprehend the financial strengths of
New Europe companies.
For more information visit:
www.modefinance.com or send an
e‐mail to: info@modefinance.com Trieste, 26/09/2008

2. Today…
Lehman Brothers crack
Alitalia
Parmalat
Cirio
…
BUT…
Tue Sep 9, 2008 2:42pm EDT S&P said it cannot rule out cutting Lehman's ratings
by more than one notch. A two‐notch downgrade
NEW YORK (Reuters) would cut Lehman's current quot;Aquot; rating, the sixth‐
highest investment grade, to the quot;triple‐Bquot; range.
For more information visit:
www.modefinance.com or send an
e‐mail to: info@modefinance.com Trieste, 26/09/2008

3. … so we need…
New, clear and transparent methods to evaluate the
financial risk of companies.
New methods for RATING assessment with new visions:
1.Clear source of information;
2.Direct and strong relation between financial figures
and final rating;
3.Completeness and comparability of data;
4.Innovative methodologies .
For more information visit:
www.modefinance.com or send an
e‐mail to: info@modefinance.com Trieste, 26/09/2008

4. Our solution: MORE
Multi Objective Rating Evaluation
Our innovation: observe, study and evaluate a
company as an engineering system, without “a priori”
assumptions.
This innovation permits a transparent evaluation of the
financial and economical quality of every companies in
Europe.
MORE: Multi Objective Rating Evaluation, based on the
more recent technologies in engineering design
(Decision Theories, Fuzzy Logic, Game Theories).
For more information visit:
www.modefinance.com or send an
e‐mail to: info@modefinance.com Trieste, 26/09/2008

5. The MORE result
MORE Rating Class Rating Macro class Assessment
The company's capacity to meet its financial commitments is extremely
AAA strong. The company shows an excellent economic and financial flow
and fund equilibrium.
The company has very strong creditworthiness. It also has a good
AA capital structure and economic and financial equilibrium. Difference
from 'AAA' is slight.
Investment Grade The company has a high solvency, The company is however more
A susceptible to the adverse effects of changes in circumstances and
economic conditions than companies in higher rated categories.
Capital structure and economic equilibrium are considered adequate.
BBB The company's capacity to meet its financial commitments could be
affected by serious unfavourable events.
A company rated 'BB' is more vulnerable than companies rated 'BBB'.
BB The company faces major ongoing uncertainties or exposure to adverse
business, financial, or economic conditions.
The company presents vulnerable financial signals. Adverse business,
Non ‐ Investment
B financial or economic conditions will be likely to impair the company's
Grade capacity to meet its financial commitments.
A company rated 'CCC' has a dangerous disequilibrium in its capital
structure and financial fundamentals. Adverse market events or
CCC inadequate management are highly likely to affect the company's
solvency.
The company shows signals of high vulnerability. In the event of
CC adverse market and economic conditions, the company's strong
disequilibrium could increase.
C Distressed The company shows considerable danger signs. The company's capacity
to meet its financial commitments is very low.
The company no longer has the capacity to meet its financial
D commitments.
For more information visit:
www.modefinance.com or send an
e‐mail to: info@modefinance.com Trieste, 26/09/2008

6. modeFinance & Bureau Van Dijk
Rating for more than 11 millions of companies in 41 European
countries: from Portugal to Ukraine.
#
ID # ID # ratings
# ratings Country companies
Countr Country companies Country assigned
assigned evaluated
y evaluated
…… …… …… ……
1 AUSTRIA
165.311 475.589
…… …… …… ……
2 BELARUS
5.091 10.875
RUSSIAN
3 BELGIUM 33 FEDERATION 814.840 2.876.654
359.827 2.589.439
BOSNIA
AND 34 SERBIA
21.498 231.488
4 HERZEGOVI 7.085 35.536
NA
35 SLOVAKIA
10.460 33.734
5 BULGARIA
200.519 965.670
36 SLOVENIA
32.638 68.678
6 CROATIA
21.146 164.268
37 SPAIN
971.489 4.793.305
7 CYPRUS
387 1.338
CZECH 38 SWEDEN
262.847 2.062.756
8 REPUBLIC 93.869 301.349
9 DENMARK
39 SWITZERLAND
33.912 155.843
175.064 716.376
10 ESTONIA 40 UKRAINE
309.125 1.831.926
70.630 339.593
UNITED
11 FINLAND
82.589 538.909
41 KINGDOM 2.354.818 10.845.504
For more information visit:
www.modefinance.com or send an
e‐mail to: info@modefinance.com Trieste, 26/09/2008

7. modeFinance Credit Report
For every European company we produce
a credit report to evaluate the financial
risk: rating and probability of default.
For more information visit:
www.modefinance.com or send an
e‐mail to: info@modefinance.com Trieste, 26/09/2008

8. modeFinance advantages
Thanks to its innovative model, modeFinance evaluates every
company in Europe: MORE methodology doesn’t need the
knowledge of bankrupted companies for the rating and the
probability of default attribution.
The modeFinance rating is particularly useful for all the countries
where financial information are missing (East Europe).
For more information visit:
www.modefinance.com or send an
e‐mail to: info@modefinance.com Trieste, 26/09/2008

9. Euroregione
In order to explain how rating could be useful for
public and private institutions we present a
study that compares three regions:
•Slovenia
•Croatia
•Triveneto
We segregate the companies also according to
their turnover.
For more information visit:
www.modefinance.com or send an
e‐mail to: info@modefinance.com Trieste, 26/09/2008

10. The companies according to turnovers
For more information visit:
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e‐mail to: info@modefinance.com Trieste, 26/09/2008

11. The Distribution of the companies’ ratings
For more information visit:
www.modefinance.com or send an
e‐mail to: info@modefinance.com Trieste, 26/09/2008

12. Why the differences in rating?
For more information visit:
www.modefinance.com or send an
e‐mail to: info@modefinance.com Trieste, 26/09/2008

13. modeFinance Exclusivity
The others... …but we provide more!
Lack of knowledge Clear source of
Objectivity of the used information: only
information AMADEUS data
Direct and strong
No clear
relation between
Transparency explanation of the
financial figures
rating assessment
and final rating
Rated only “big” 11 million of
Completeness
companies companies
For more information visit:
www.modefinance.com or send an
e‐mail to: info@modefinance.com Trieste, 26/09/2008

14. modeFinance
• Professor at Mechanical Engineering, University of Trieste, Italy
• Professor at Mechanical Engineering, University of Trieste, Italy
• PhD in Numerical Methods.
• PhD in Numerical Methods.
Valentino Pediroda • modeFinance co‐founder
• modeFinance co‐founder
Tel: +39 334 6717480
Tel: +39 334 6717480
email: valentino.pediroda@modefinance.com
email: valentino.pediroda@modefinance.com
• Advisor for Italian rating agencies
• Advisor for Italian rating agencies
• PhD in Corporate Finance
• PhD in Corporate Finance
Mattia Ciprian • modeFinance co‐founder
• modeFinance co‐founder
Tel: +39 340 2948054
Tel: +39 340 2948054
email: mattia.ciprian@modefinance.com
email: mattia.ciprian@modefinance.com
•MBA in Corporate Finance
•MBA in Corporate Finance
• modeFinance Financial Analyst
• modeFinance Financial Analyst
Pinar Dilek
email: pinar.dilek@modefinance.com
email: pinar.dilek@modefinance.com
For more information visit:
www.modefinance.com or send an
e‐mail to: info@modefinance.com Trieste, 26/09/2008

15. Where we are
Trieste, Italy: AREA Science and Technology Park
• The leading Science and Technology Park in Italy
• Established in 1978
• Key point: only companies with high innovative
technologies.
modeFinance Headquarter
building R3, 2nd floor c/o Innovation
Factory
AREA Science Park, Padriciano 99
34012 Trieste
ITALY
Phone1: +39 334 6717480
Phone2: +39 340 2948054
Fax: +39 040 3755176
e‐mail: info@modefinance.com
Web: www.modefinance.com
For more information visit:
www.modefinance.com or send an
e‐mail to: info@modefinance.com Trieste, 26/09/2008