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Article
A Credit Rating Model in a Fuzzy Inference System Environment
Algorithms
  • Amir Karbassi Yazdi, Islamic Azad University, Tehran South
  • Thomas Hanne, University of Applied Sciences and Arts Northwestern Switzerland
  • Yong J. Wang, West Chester University of Pennsylvania
  • Hui-Ming Wee, Chung Yuan Christian University
Document Type
Article
Publication Date
7-1-2019
Abstract

One of the most important functions of an export credit agency (ECA) is to act as an intermediary between national governments and exporters. These organizations provide financing to reduce the political and commercial risks in international trade. The agents assess the buyers based on financial and non-financial indicators to determine whether it is advisable to grant them credit. Because many of these indicators are qualitative and inherently linguistically ambiguous, the agents must make decisions in uncertain environments. Therefore, to make the most accurate decision possible, they often utilize fuzzy inference systems. The purpose of this research was to design a credit rating model in an uncertain environment using the fuzzy inference system (FIS). In this research, we used suitable variables of agency ratings from previous studies and then screened them via the Delphi method. Finally, we created a credit rating model using these variables and FIS including related IF-THEN rules which can be applied in a practical setting.

Publisher
MDPI
DOI
10.3390/a12070139
Citation Information
Amir Karbassi Yazdi, Thomas Hanne, Yong J. Wang and Hui-Ming Wee. "A Credit Rating Model in a Fuzzy Inference System Environment" Algorithms Vol. 12 Iss. 7 (2019) p. 1 - 15 ISSN: 1999-4893
Available at: http://works.bepress.com/yong-wong/1/