Chapters 21 – 26 suggest a new approach to rating methodology. Chapters 21 and 22 are devoted to rating of non-financial issuers, while Chaps. 23 – 26 are devoted to project rating (long-term as well as arbitrary durations). The key factors of a new approach are: (1) The adequate use of discounting of financial flows virtually not used in existing rating methodologies, (2) The incorporation of rating parameters (financial “ratios”) into perpetuity limit (Modigliani and Miller, Am Econ Rev 48:261–297, 1958; Modigliani and Miller, Am Econ Rev 53:147–175, 1963; Modigliani and Miller, Am Econ Rev 56:333–391, 1966; Myers, J Econ Perspect 15:81–102, 2001) of the modern theory of capital structure (Brusov–Filatova–Orekhova (BFO) theory) (Brusov et al., Modern corporate finance, investments and taxation, Springer International Publishing, 373 p., 2015; Brusov, J Rev Glob Econ 7:i–vi, 2018; Brusov et al., Modern corporate finance, investments, taxation and ratings, Springer Nature Publishing, 571 p., 2018a; Brusov et al., J Rev Glob Econ 7:37–62, 2018b; Brusov et al., J Rev Glob Econ 7:88–103, 2018c; Brusov et al., J Rev Glob Econ 7:63–87, 2018d; Brusov et al., J Rev Glob Econ 7:104–122, 2018e; Brusov et al., J Rev Glob Econ 7:360–376, 2018f; Brusov et al., Modern corporate finance and investments, Knorus Publishing House, 2018g, 517 p.; Brusov et al., J Rev Glob Econ 8:437–448, 2019; Brusov et al., Ratings: Critical analysis and new approaches of quantitative and qualitative methodology, Springer Nature Publishing, 369 p., 2020a; Filatova et al., J Rev Glob Econ 7:645–661, 2018). This on the one hand allows use the powerful tools of this theory in the rating, and on the other hand it ensures the correct discount rates when discounting of financial flows. We discuss also the interplay between rating ratios and leverage level which can be quite important in rating. All these create a new base for rating methodologies. New approach to ratings and rating methodologies allows to issue more correct ratings of issuers, makes the rating methodologies more understandable and transparent. In Chap. 24 further development of a new approach to project ratings has been done: it has been generalized for the general case of modern theory of capital structure (Brusov–Filatova–Orekhova (BFO) theory), which is valid for companies of arbitrary age. Ratings of the investment projects of arbitrary durations is studied in Chap. 25 . In Chap. 26 ratings of investment projects of arbitrary duration with a uniform debt repayment is described.

Application of the Modigliani–Miller Theory in Rating Methodology

章节
发表日期：

2025年

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Peter Brusov,
Tatiana Filatova

摘要

Chapters 21 – 26 suggest a new approach to rating methodology. Chapters 21 and 22 are devoted to rating of non-financial issuers, while Chaps. 23 – 26 are devoted to project rating (long-term as well as arbitrary durations). The key factors of a new approach are: (1) The adequate use of discounting of financial flows virtually not used in existing rating methodologies, (2) The incorporation of rating parameters (financial “ratios”) into perpetuity limit (Modigliani and Miller, Am Econ Rev 48:261–297, 1958; Modigliani and Miller, Am Econ Rev 53:147–175, 1963; Modigliani and Miller, Am Econ Rev 56:333–391, 1966; Myers, J Econ Perspect 15:81–102, 2001) of the modern theory of capital structure (Brusov–Filatova–Orekhova (BFO) theory) (Brusov et al., Modern corporate finance, investments and taxation, Springer International Publishing, 373 p., 2015; Brusov, J Rev Glob Econ 7:i–vi, 2018; Brusov et al., Modern corporate finance, investments, taxation and ratings, Springer Nature Publishing, 571 p., 2018a; Brusov et al., J Rev Glob Econ 7:37–62, 2018b; Brusov et al., J Rev Glob Econ 7:88–103, 2018c; Brusov et al., J Rev Glob Econ 7:63–87, 2018d; Brusov et al., J Rev Glob Econ 7:104–122, 2018e; Brusov et al., J Rev Glob Econ 7:360–376, 2018f; Brusov et al., Modern corporate finance and investments, Knorus Publishing House, 2018g, 517 p.; Brusov et al., J Rev Glob Econ 8:437–448, 2019; Brusov et al., Ratings: Critical analysis and new approaches of quantitative and qualitative methodology, Springer Nature Publishing, 369 p., 2020a; Filatova et al., J Rev Glob Econ 7:645–661, 2018). This on the one hand allows use the powerful tools of this theory in the rating, and on the other hand it ensures the correct discount rates when discounting of financial flows. We discuss also the interplay between rating ratios and leverage level which can be quite important in rating. All these create a new base for rating methodologies. New approach to ratings and rating methodologies allows to issue more correct ratings of issuers, makes the rating methodologies more understandable and transparent. In Chap. 24 further development of a new approach to project ratings has been done: it has been generalized for the general case of modern theory of capital structure (Brusov–Filatova–Orekhova (BFO) theory), which is valid for companies of arbitrary age. Ratings of the investment projects of arbitrary durations is studied in Chap. 25 . In Chap. 26 ratings of investment projects of arbitrary duration with a uniform debt repayment is described.