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Credit Scoring &
Credit Assessment Framework
A structured approach to evaluating the relative creditworthiness of issuers and investment opportunities listed on the KLDX platform.
Overview & Purpose
- Issuer screening and onboarding
- Product structuring and risk assessment
- Investor disclosure and transparency
Credit Assessment Dimensions
Each issuer is assessed across four dimensions, each sub-criterion is scored individually and contributes to overall assessment.
Financial Risks
- Earnings quality and sustainability
- Capital structure and leverage
- Debt servicing capacity
- Liquidity and cash flow volatility
Business Risks
- Business model viability
- Market position and competitive landscape
- Operating efficiency and execution capacity
Industry Risks
- Industry structure and growth outlook
- Regulatory and policy environment
- Cyclicality and external risk exposure
Shareholder and Management Risks
- Shareholder support and financial strength
- Management experience and track record
- Corporate governance and oversight
Weighting Methodology & Risk Sensitivity
While the KLDX Credit Scoring Matrix is applied consistently, the relative weighting assigned to each risk dimension may vary depending on the industry, business model, stage of development, and transaction-specific risk profile.
KLDX adopts a principles-based and risk-sensitive approach, recognising that no single weighting structure is appropriate for all issuers or asset classes.
- Industry Characteristics. Capital intensity, regulatory dependence, cyclicality, exposure to policy or technological change
- Business model and stage. Early-stage versus established operations, contracted versus market-driven revenues, project-based versus corporate cash flows
- Financial risk profile. Leverage levels, cash flow predictability, refinancing risk, balance sheet resilience
- Structural and support considerations. Presence of parental or corporate guarantees, ring-fencing of cash flows, or other credit enhancements
| Issuer / Transaction Profile | Higher Emphasis | Lower Emphasis |
|---|---|---|
| Asset-heavy infrastructure or project-based transaction | Financial risk, cash flow stability, contractual support | Market positioning |
| Early-stage or growth-oriented issuers | Business risk, management capability, shareholder support | Historical financial metrics |
| Regulated or policy-driven sectors | Industry and regulatory risk | Competitive dynamics |
| Issuers with strong shareholder or parental support | Structural support and guarantees | Standalone financial profile |
Any weighting adjustments are documented in the credit rationale and reviewed as part of KLDX's internal governance process.
Credit Assessment Process
KLDX follows a structured internal credit assessment process, informed by established market practices. The process may be refined or amended from time to time to reflect regulatory requirements, operational evolution, or changes in risk governance.
Information Assessment & Availability
Request for initial corporate, business, financial, and transaction-specific information. Review available information, financial statements, and credit documentation.
Review of Information
Assessment of completeness, consistency, and relevance. Requests for clarification or additional information where required.
Management Engagement
Discussions with management on business operations, strategy, financial performance, and key risks. Site visits or operational reviews, where applicable.
Credit Assessment & Report Preparation
Preparation of an internal credit assessment report. Identification of key risk drivers, strengths, and weaknesses. Application of the credit scoring matrix and rationale.
Internal Review & Approval
Review by relevant internal personnel or committees. Determination of final internal credit views.
Draft Credit Assessment
Preparation of a draft summary for internal use or factual verification.
Feedback and Clarification
Confirmation of factual accuracy. Incorporation of clarifications or corrections.
Final Credit Assessment
Finalisation and documentation of the internal credit assessment. Use for disclosure, decision-making, and monitoring purposes.
KLDX Credit Scoring Matrix
Each assessment criterion is scored on a 0 to 5 scale, reflecting KLDX's internal view of risk and performance.
| Score | Interpretation |
|---|---|
| 5 | Best – Lowest risk; excellent performance |
| 4 | Good – Low risk; above-average performance |
| 3 | Acceptable – Medium risk; average performance |
| 2 | Poor – High risk; below-average performance |
| 1 | Worst – Unacceptable risk; critical weaknesses |
| 0 | Missing data – Insufficient information available |
| Weighted Score Range | Credit Band | Assessment Risk Profile |
|---|---|---|
| 0.0 – <1.0 | Band 1 | Very high repayment risk |
| 1.0 – <2.0 | Band 2 | High repayment risk |
| 2.0 – <3.0 | Band 3 | Medium repayment risk |
| 3.0 – <4.0 | Band 4 | Low repayment risk |
| 4.0 – 5.0 | Band 5 | Lowest repayment risk |
Governance & Ongoing Review
The KLDX credit scoring framework and assessment process are subject to internal governance and oversight and may be:
- Updated to reflect regulatory developments
- Refined for new asset classes or transaction structures
- Reviewed periodically to ensure continued relevance and robustness
KLDX reserves the right to amend, update, or refine its credit scoring methodology and assessment process without prior notice.
Important Disclaimer
⚠️ The KLDX Credit Scoring and Credit Assessment:
- Represents KLDX's internal opinion on relative credit risk as at the date of assessment
- Does not constitute a guarantee of performance or timely repayment
- Is not a licensed credit rating and is not issued by a credit rating agency
- Is derived from information provided by issuers and publicly available sources, which may not have been independently verified
The credit score is not a recommendation to subscribe, purchase, sell, or hold any securities, nor does it constitute legal, accounting, tax, or investment advice. Investors should conduct their own independent assessment and seek professional advice where appropriate.
KLDX is founded and managed by domain experts with in-depth knowledge of capital markets. Our platform provides retail and institutional investors access to a broader range of regulated investment opportunities in private market assets.
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