maintains more than 35 distinct credit models to accurately evaluate tenant credit across a wide variety of industries, including:
TRA looks into the net worth of the individual guaranteeing the lease, and assess her creditworthiness based on the composition of net worth and the quality of her income stream.
TRA reviews the strength and diversity of the NFP’s revenue stream, margins, investments, and the sustainability and durability of the organization’s mission.
Healthcare companies rely on the scope of operations and relevant market and regulatory conditions in addition to balance sheet strength, liquidity, sources of revenue and operating margins. Pharmaceutical and biotech companies rely on the breadth and depth of their product portfolios, including patent and pipeline strength, in addition to maintaining ready access to outside capital.
Telecom and cable companies operate in a regulated space. Market positioning, as well as the regulatory and political environment, are critical factors in understanding Telecom credit, along with traditional cash flow and leverage metrics.
When rating software and technology companies, TRA assess the firm’s size, scale, capitalization and shareholder policies, and combines it with an evaluation of its business model, customers base, and broader market factors to assess credit quality.
TRA scores the quality of a REIT or real estate company’s liquidity, funding, and capital structure as part of a broader review of the company’s assets and asset quality, market positioning, and development.
TRA reviews the size, geographic and demographic coverage, and product diversification when evaluating a brand’s strength. We then review traditional profitability and capitalization metrics when scoring a consumer or retail brand.
TRA looks at the diversity of a co-working company’s location specific revenue stream, rent roll quality and tenant quality, while also measuring the location’s broader engagement with the local community. The relationship with the parent company and the parent company’s credit metrics are also factors.
TRA’s comprehensive approach to evaluating startups involves a thorough review of the company’s product or service, as well as its business model, founders, investors, funding status, and milestones in order to provide a forward looking credit score.
In understanding manufacturing companies, it is critical to evaluate supplier and customer concentration, along with trend in new orders. The company’s size and diversification, combined with traditional credit metrics, offer high quality insight into a manufacturer’s credit quality.
Whether it’s a life or P&C insurer, TRA examines franchise strength, market positioning, asset quality, profitability, and capitalization when assessing credit worthiness.
TRA’s review of banks, lenders, asset managers, securities companies and brokerages all leverage subsector specific credit metrics to measure an entity’s strength and sustainability.
In addition to traditional credit metrics like leverage, coverage, and margins, TRA assesses a media company’s market position, market share, and business model to determine the firm’s credit profile.
When examining logistics firms, we look into the various modalities and geographic coverage and combine that with traditional cash flow, profitability, and leverage metrics.
We look at a business services company’s size, competition, and demand for services and combine with traditional profitability and leverage metrics when assessing credit quality.
TRA focuses on a law firm’s practice areas, staffing, and compensation metrics and combines them with the firm’s profitability and market reputation when scoring a law firm’s credit profile.