Credit Rating

Credit rating, the assessment of a borrower's creditworthiness, is crucial for financial decision-making and regulatory compliance. Current research focuses on improving the accuracy and efficiency of credit rating prediction using various machine learning models, including traditional methods like XGBoost, deep learning architectures such as CNNs and LSTMs, and transformer-based models, often incorporating both structured financial data and unstructured textual information. While deep learning models show promise in handling multi-modal data, studies indicate that simpler models can remain highly competitive, particularly when dealing with numerical data. These advancements have implications for both investors, enabling better risk assessment, and regulators, improving the stability of the financial system.

Papers

October 30, 2024

AI in Investment Analysis: LLMs for Equity Stock Ratings
Kassiani Papasotiriou, Srijan Sood, Shayleen Reynolds, Tucker Balch
Artificial Intelligence Medical LLM Multimodal Data Mutual Fund Credit Rating

July 24, 2024

Traditional Methods Outperform Generative LLMs at Forecasting Credit Ratings
Felix Drinkall, Janet B. Pierrehumbert, Stefan Zohren
Transfer Learning Multimodal Data Current Method Credit Rating

September 19, 2023

Corporate Credit Rating: A Survey
Bojing Feng, Xi Cheng, Dan Li, Zeyu Liu, Wenfang Xue
Timely Survey Neural Network Model Credit Scoring Credit Rating

April 21, 2023

Multi-Modal Deep Learning for Credit Rating Prediction Using Text and Numerical Data Streams
Mahsa Tavakoli, Rohitash Chandra, Fengrui Tian, Cristián Bravo
Deep Learning Model Text Modality Data Stream Multi Modal Deep Learning Data Fusion Credit Rating

July 10, 2022

Multi-task Envisioning Transformer-based Autoencoder for Corporate Credit Rating Migration Early Prediction
Han Yue, Steve Xia, Hongfu Liu
Transformer Based Multi Task Credit Scoring Rating Prediction Credit Rating

February 9, 2022

Managers versus Machines: Do Algorithms Replicate Human Intuition in Credit Ratings?
Matthew Harding, Gabriel F. R. Vasconcelos
Machine Learning New Machine Score Based Human Intuition Risk Score Credit Rating

December 14, 2021

Applicability of Large Corporate Credit Models to Small Business Risk Assessment
Khalid El-Awady
Applicability Study Credit Risk Credit Scoring Model Credit Risk Model Credit Rating Enterprise Risk

Credit Rating

Papers

AI in Investment Analysis: LLMs for Equity Stock Ratings

Traditional Methods Outperform Generative LLMs at Forecasting Credit Ratings

Corporate Credit Rating: A Survey

Multi-Modal Deep Learning for Credit Rating Prediction Using Text and Numerical Data Streams

Multi-task Envisioning Transformer-based Autoencoder for Corporate Credit Rating Migration Early Prediction

Managers versus Machines: Do Algorithms Replicate Human Intuition in Credit Ratings?

Applicability of Large Corporate Credit Models to Small Business Risk Assessment