Borrower Quality Rating

Last Updated: Jun 6, 2019

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A borrower quality rating (BQR) is a number assigned to a borrower based on that borrower’s perceived credit riskiness. Account managers use a combination of several factors to arrive at the borrower’s assigned rating. BQRs consider quantitative factors such as: operating leverage, debt service coverage, profitability, and free cash flow. They also look at qualitative factors such as: the quality of financial statements, historical financial trends, strength of management or sponsorship, market position, and operational risks.