Rating process at public offerings of Sme's a pretiminary rating model application

Rating is an unbiased judgment given by independent organizations on the ability of security issuer organizations to manage the capital of debt instrument and interest payments on time. In other words, it is the viewpoint of an asset or security performance and a credit worthiness. As already known, one of the most significant problems of Small and Medium Sized Organizations is the problem of financing. To solve this problem, when Small and Medium Sized Organizations seek a financial source whether by securing loans from banks and international markets or by discharging security, the need for o rating grade given by independent rating organizations is unavoidable. Rating companies gather and analyze various financial, industrial, marketing and economic data. In this way, credit rating companies provide a more independent, reliable and professional analysis made by investors themselves and, using easily comprehensible symbols (AAA, D) , give meaningful information to investors about the quality of the discharged security and the risk category to which the issuer company belongs. From this point of view, the rating is quite important for financial markets and the importance given to rating increasing day by day. In the majority of developing countries? economics, such as Turkey, the rating system is an important factor in the development of markets. However, when the possibility of implementing rating methods was investigated, it was concluded that our country does not fulfill the economic requirements necessary for rating companies to be rationally active and that small and medium sized organizations must take a series of measures from the point of view of adapting itself, whether to the rating system or to capital markets