An Introduction to the “SME Rating”, and Specific “SME Credit Rating” Concepts

This chapter introduces the SME rating and SME credit ratingSME credit rating concepts (SME ratings are the broad definition of ratings related to SMEsSmall and Medium-sized Enterprises (SMEs), with SME credit ratingsSME credit rating forming a subset of the overall SME rating industry. Within this book, we will focus on all of these ratings but will have a specific focus on the SME credit rating concept, which is the most popular form of SME ratings), maps the existing industry, and highlights the technical dynamics behind these ratings. It is important to note that SME ratings make up a large classification of ratings that includes SME credit ratingsSME credit rating, SME due diligence ratings, SME gradingsgrading(s), and SME ESGESG ratings. SME credit ratingsSME credit rating are the largest subset of the SME rating category and were the first type of rating within the SME rating segment. This chapter introduces these concepts and some ancillary services that complement the SME rating function. A few of these ancillary services are unpacked in greater detail within the latter chapters, which focus on the public sector SME rating model.