investing in a financial instrument and you want your
investment secure – so what do you chose? Imaging the
following scenario! A Financial Instrument issued by a
small, not so well known bank, financial institution, or
corporation; but solidly backed by prime assets - OR -
a Financial Instrument issued by a big well-known bank,
financial institution, or corporation but not backed by
any assets; just their name. Which has the higher rating
when you are considering a purposeful investment? This
is the question many investors have to consider.
Some will say
the Big Bank or Institution because they are well known
– others may say the asset backed instrument because it
has REAL value. Maybe both are right and only you, the
Investor can decide which is right for you.
That’s why we
established AACRAA - to provide a tool to help you,
whether a small investor or a large financial
institution, to make a more qualified decision when
investing in a Financial Instrument that has been rated
by AACRAA. We believe an ASSET backed Instrument should
be recognized and rated separately to the
CREDIT-worthiness rating of the issuer.
RATING is determined on the evaluation of the assets
supporting the Financial Instrument,
CREDIT-worthiness RATING is determined on the evaluation
of the Issuer to pay its obligations when they fall due.
evaluation team consists of accountants and auditors who
process the relevant data through a computerized
evaluation module to determine and ASSET Rating and / or
CREDIT-worthiness rating of issuers of Financial
are determined from a range of variables such as being
backed by: cash, gold, oil, minerals, property, precious
stones, precious metals, in ground or out of ground
reserves to name just a few.
Credit-worthiness Ratings are determined from a range of
variables such as past performance, short-, medium-, and
long term projections as well as the current financial state and
structures or cash flows and other market influences
that will or could effect the reputation of the issuer.