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+--- Thread: Credit Ratings (/showthread.php?tid=258)
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Credit Ratings - Unknown98 - 05-01-2017
I've implemented credit ratings for airlines now. This was required for aircraft leasing, which is the next feature I want to work on. Credit ratings are derived from your airline's debt to asset ratio, which is a representation of total liabilities/total assets.
You can view a spreadsheet to calculate your airline's credit rating here: https://docs.google.com/spreadsheets/d/1HThP4AyS0zw6ouolBKyKzRD3vuo0tnL0gaIB28pcNu0/edit?usp=sharing
AAA
AA+
A+
A
A-
BBB+
BB+
B+
B
B-
CCC+
CC
C
(Is that too many...? I feel like it may need to be simpler). Right now the calculation for debt to asset ratio is rather simple:
Liabilities = owed payments on new aircraft
Assets = current market value of your owned fleet + cash
Ratio = (Liabilities/Assets)
That formula is still in it's infancy. In real life credit ratings take into account more than just the debt to asset ratio. I'll have to do a bit of research and see what else is involved and then add it to the formula.
RE: Credit Ratings - Ryan97 - 05-01-2017
Love it! And looking forward to leasing too. Will it be like CA where leasing pax planes made very little profit?
RE: Credit Ratings - Unknown98 - 05-01-2017
Leased planes will work the same as purchased aircraft except that you'll have a weekly payment on them.
RE: Credit Ratings - Unknown98 - 05-02-2017
Made some changes to the formula. Credit rating now takes into account three different categories:
- Amount Owed - How much you owe compared to how much you have (debt/asset ratio)
- Payment history - How many times did you make a late payment, and what is the total value of those payments
- Length of credit (airline age)
The 3 categories are weighted as follows:
- Amount owed - 45%
- Payment history - 40%
- Length of credit - 15%
For now, if you do not have enough money to make a payment, the payment will still be made and your cash will go into the negatives. But in the future for certain transactions like payments for new aircraft, I think what I'll do is mark the payment as late, and then push it back 1 week and try again.
RE: Credit Ratings - Ryan97 - 05-02-2017
Damm there goes my AAA credit rating. LOL
RE: Credit Ratings - Unknown98 - 05-08-2018
A new formula for credit rating has been implemented. Credit rating now takes into consideration financial performance of your airline, by considering your airline's average profit margin of the past 30 days.
Length of Credit: 15% - Any airline with an age of less than 700 days will suffer a small penalty to credit rating. An airline with an age of 0 days will have the maximum penalty (15%) while an airline with an age of 699 days will have a minimal penalty.
Debt/Asset Ratio: 40% - Debts include weekly aircraft leases, weekly gate leases and loans. Assets include cash and owned aircraft.
Financial Performance: 45% - Takes the average profit margin from the past 30 days. Profit margins less than 15% will penalize your credit rating, anything above 15% will help your credit rating.
New ratings and lease limits:
AAA: 6 loans | $500,000,000 @ 1.5% APR | 200 leases
AA+: 5 loans | $400,000,000 @ 2% APR | 150 leases
A: 4 loans | $250,000,000 @ 4% APR | 70 leases
A-: 4 loans | $200,000,000 @ 4.5% APR | 50 leases
BBB+: 3 loans | $180,000,000 @ 5% APR | 30 leases
BB+: 3 loans | $150,000,000 @ 6% APR | 20 leases
B: 2 loans | $110,000,000 @ 8% APR | 8 leases
B-: 2 loans | $100,000,000 @ 8% APR | 6 leases
CCC+: 2 loans | $90,000,000 @ 9% APR | 4 leases
CC: 1 loan | $80,000,000 @ 10% APR | 2 leases
C: 1 loan | $80,000,000 @ 10% APR | 1 lease
Since there have been lots of questions about what affects credit rating and how much certain things affect it, here is a spreadsheet you can download and plug in values to determine how certain changes affect your rating: https://docs.google.com/spreadsheets/d/1HThP4AyS0zw6ouolBKyKzRD3vuo0tnL0gaIB28pcNu0/edit?usp=sharing
I've also reset everyone's 2 week reset limit again, so if you want to reset and test out the new credit ratings from scratch you are free to do so. Let me know if you run into any issues.
RE: Credit Ratings - Unknown98 - 05-08-2018
Made a few changes. Game was not dividing the monthly lease by 4 to get weekly lease amounts for aircraft, so I fixed that. It was also counting shared gate costs against your rating, it now only accounts for dedicated gates.
I also made a change to prevent purchasing aircraft from lowering your credit rating as that was not my intention. Purchasing an aircraft now shouldn't lower your rating as it is just a redistribution of assets. However aircraft lease payments are valued a lot higher than previously to account for the upcoming lease payments that you will incur as liabilities. If you downloaded the spreadsheet you'll have to re-download it to see the changes I made.
It probably needs some tweaking still, but let's see how it works now.
RE: Credit Ratings - Unknown98 - 05-10-2018
Made a few changes -
Debt/asset ratio now only helps your credit rating if it is 0.40 or better (the lower the number - the better). Previously as long as it was 1.00 or lower, it would help your rating. This prevents taking out loans from raising your credit rating. Loans could now slightly lower your rating.
Also changed the steps between rating jumps, mainly to accommodate the free 5 leases at game start, but also to make it a little easier to get out of CCC+ territory into B- and B territory, and also a bit harder to get into AA+ and AAA territory.
The spreadsheet is updated as well: https://docs.google.com/spreadsheets/d/1HThP4AyS0zw6ouolBKyKzRD3vuo0tnL0gaIB28pcNu0/edit?usp=sharing
RE: Credit Ratings - Dazwalsh - 05-15-2018
Cheers unknown, the changes are a lot better than previous version
RE: Credit Ratings - Unknown98 - 06-10-2018
I've changed the credit rating formula a bit to count for your ability to pay the aircraft leases - essentially if your average daily net operating income for the past 30 days is more than 2x your average daily leasing costs (calculated by dividing total weekly leases by 7) it will provide a boost to your credit rating.
I will post a new spreadsheet later tonight, as well as try to display some helpful calculations in-game that will display things such as total weekly aircraft leases, avg daily net operating income, etc. to make calculating your credit ratings a bit easier.
I also changed the steps between ratings just a bit - will be posted with the new spreadsheet