Pursuant to the decisions of the National Bank of Serbia, a scoring issued by the Serbian Business Registers Agency shall be the reference solvency evaluation to be used by the Central Bank in conducting monetary operations.
According to the decisions of the NBS, securities issued by enterprises having an adequate solvency evaluation – i.e. the ones that obtained, at least, the Agency’s B - Very Good Solvency – shall be included in the list of securities that may be purchased by the NBS on the secondary market (from commercial banks) and may be used as a financial security (collateral) for obtaining short-term bank liquidity loans and short-term daily liquidity loans.
Scoring is a solvency evaluation that has been present on the domestic market since 2007, while the third version thereof has been made available to users as of 5 May 2020. It is determined according to the model, which is adjusted to the contemporary business operation requirements, respecting all financial analysis rules.
Scoring is determined applying the quantitative analysis deriving from the financial statements data for the last five years or for not less than the last three years, considering the area of business activity performed by an enterprise. In addition to this, the qualitative analysis is using the up-to-date data on non-liquidity, prohibition to dispose of funds in bank accounts, data on the instigated legal proceedings, as well as all other relevant information.
Enterprises may be assigned a scoring comprising a solvency evaluation expressed in the five basic and three specific levels: Excellent Solvency (AА), Very Good Solvency (BB+, BB, BB-), Good Solvency (CC+, CC, CC-), Poor Solvency (DD+, DD, DD-) and Very Weak Solvency (ЕE). For enterprises undergoing some legal proceedings (bankruptcy, liquidation, status change), as well as those being illiquid for a long period of time, newly-established enterprises or those whose data is either unavailable or insufficient, a solvency evaluation is not being determined, while the scoring is expressed in specific status symbols.
The restrictions prescribed by the NBS regarding corporate securities to be accepted in monetary operations, i.e. the ones issued by enterprises having Excellent Solvency and Very Good Solvency, show the NBS’s commitment to invest in good quality securities, issued by enterprises with either excellent or very good ability to settle their obligations, as the result of their high profitability, financial stability and safety, as well as flexibility in business operations.
According to the 2019 financial statements data, which have been submitted so far by approximately 74,000 enterprises, the SBRA has determined scoring for the period 2015-2019, of which 10,279 enterprises have Excellent and Very Good Solvency.
This is to remind that, pursuant to the Decree issued by the Government of the RS, the deadline for submission of the 2019 financial statements has been extended until 4 August 2020, as well as that for all those enterprises that have not submitted their 2019 financial statements yet, and until they submit them, the SBRA is issuing scoring for the period 2014-2018. That scoring has been determined for a total of 101,577 enterprises, of which 16,855 have Excellent and Very Good Solvency.
Choosing the SBRA’s scoring as the reference solvency evaluation for monetary operations of the NBS confirms the objectivity and credibility of this evaluation on the country’s financial market. The issuance of that evaluation shows, among other things, the leading role of the SBRA as a service provider to the economy, but also the significant role that it has as one of the participants that encourages the development of the domestic capital market.
Scoring is available to all interested users. Detailed information regarding ordering of scoring is available on the SBRA’s website, in the section Financial Statements/SBRA Solvency/Scoring.