McGraw-Hill Financial Funds Development of Credit-Rating Tool for VEI Firms
With funding from McGraw Hill Financial and guidance from its Standard & Poor’s division, VEI is developing a credit-rating tool that will enable student-run firms to assess the creditworthiness of their own businesses as well as that of prospective trading partners and competitors. The tool will also enable VEI’s central lending agency, the U.S. Network Bank, to determine the interest rate that borrowers will pay for business loans and, most importantly, will create opportunities to provide instruction in the critical areas of credit, finance and risk within the context of the VEI simulation.
The credit rating system will require VEI companies to adhere to rigorous financial reporting requirements, which will be reflected in the company’s business plan and annual report, required components of the VEI program.
VEI and McGraw Hill Financial share the fundamental goals of providing young people with the tools and skills they need to become productive and financially responsible members of their communities. VEI is grateful for the support of McGraw Hill Financial, a leader in credit ratings, benchmarks and analytics for the global capital and commodity markets.