> For the complete documentation index, see [llms.txt](https://quantixfinance.gitbook.io/quantixfinance-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://quantixfinance.gitbook.io/quantixfinance-docs/risk-management-and-compliance/credit-assessment.md).

# Credit assessment

No borrower draws capital without passing a structured assessment. The delegate works through a defined sequence, and the same sequence applies to every borrower in a pool, so that credit decisions are comparable rather than ad hoc.

The assessment covers, in order: an in-depth financial and business review of the borrower; analysis of the key metrics and the specific risk mitigants for the credit; a sector and market analysis to place the borrower against its peers and conditions; review of a due-diligence questionnaire followed by direct meetings; and application of an internal risk scorecard that turns the qualitative picture into a comparable rating. Completion of KYC and execution of the Master Loan Agreement close the process before any capital moves.

The scorecard is the part that makes the rest usable. It resolves each credit into a lettered tier — from strongest to weakest — so that two borrowers underwritten by the same delegate can be ranked, priced, and limited consistently against a shared scale, and so that a deteriorating borrower can be recognized as such against its own prior rating rather than judged in isolation each time. A lender does not need the delegate's proprietary underwriting model to use this — the tier itself, and any change in it, is what matters for evaluating a position.

Assessment does not end at origination. The rating is revisited as the borrower reports and as conditions change, and a downgrade in tier is a trigger for the monitoring and exception processes described elsewhere in this document.