Assessment of the credit rating criteria by analytic hierarcy process method

When financial corporations actualize the credit making functions, They try to make an important decision about the person claiming credit or credibility of the establishment. The corporations in process of assessment of loan demand have to make decision by paying attention to many criteria like financial and profitibality ratios to take decision influentially. Lots of the criteria take part in the decision is a factor making the decision and analyses difficult. Analytic Hierarcy Process (AHP) which can order and digitize the criteria and alternatives in complex decisions entailing comparison of the decision elements evaluated hard especially can be used for making the process and decision easier. In this study, the importance weight and ranking of the credit rating criteria had been tried to get determined by AHP method was used. As a result of the analysis made by evaluations of the bank specialists, the weighting and ranking had been made and determined that the key criterion of profitability was the most important key criterion. In the application chapter of study, Analytic Hierarcy Process and Promethee ordering methods which are types of Multi-Criteria Decision Making Method had been used. AHP method tackles a problem with its whole process. That evaluates the contributions of the key and sub-criteria differently. Analytic Hierarcy Process gets used in solving the complex problems encountered in many fields because of considering the qualitative and quantitative criteria and holding a simple structure looking like the real life. Promethee Method evaluates the alternatives for different preference functions and then this method makes the detailed analyses get actualized by partial and total ranking gets obtained based on these alternatives easy. In this context financial ratios of the companies as the key and sub-criteria had been used and the hierarchical structure had been created by these ratios were weighted . As a result of the application the total of credit scores of the companies had been computed. The company which has the best credibility had been determined by the credit scores obtained were transferred to PROMETHEE Ordering Method. Keywords: Credit Rating, Analytic Hierarcy Process, AHP, PROMETHEE, Multi-Criteria Decision Making,