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SPL clubs' credit rating


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According to tonights Evening Express we have an Equifax credit rating of 84 while the scums rating is a mere 79, how can this be? have the mhedia not been telling us were facing finacial meltdown while they have money burning a hole in their pockets.

 

Given this info is from probably the leading name in credit ratings it seems all is not as rosey as they would have you to believe over at the Brendebeu.

 

Full SPL Ratings are as follows.

 

St Johnstone 100

St Mirren 100

Hibs 87

Rangers 84

Celtc 79

Aberdeen 78

Kilmarnock 71

Falkirk 57

Dundee Utd 42

Hamilton 2

Hearts 0

Motherwell 0

 

Hamilton, Hearts and Motherwell are technically insolvent.

 

Does this really mean anything? Just a number? Or are Celtic not significantly better off than us? Interesting that some of the wee clubs have the better scores.

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Credit ratings isnt really a function of your financial standing though. BD perhaps uses Equifax for his company more than I do so could maybe give you the intricacies of it- but credit ratings are often a reflection of your past performance in paying your bills.

 

Eg, paying your credit card bill on time will improve your credit rating. Paying late will give you a worse credit rating. Same with mortgage etc. Now, when you get a mortgage the lender will obtain certain financial data from you but if you have the same lender 10 years down the road they likely wont have asked you for that info again so long as you have paid on time. Yet your credit rating will have went up because you were a good payer.

 

It could very well be that we pay our bills on time every time whilst the Tims play hardball more when paying their creditors/vendors.

 

There are other factors involved in credit ratings but credit ratings from the likes of Equifax is not necessarily an indication od your financial status.

 

Corporate credit ratings from Standard & Poor's, Moody's, AM Best etc would be a reflection of their opinion of your financial strength though as they are looking at financial statements, capital modelling, forecasts, industrial averages, industry strengths & weaknesses etc

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