Modeling Customers Credit Rating Based on Life Cycle and Financial Ratios: Approach of Discriminant Analysis

The aim of this study was to present a model of legal customers credit rating based on financial ratios and firm life cycle. The statistical population of research consist the all legal customers of bank of industry and mine in 2019 in a number of 132 firms. So, a number of 11 financial ratios beside of firms’ life cycle were studied through the analysis of variance test, independent test of chi-square and discriminant analysis and the results showed that firms’ financial ratios in different credit rates, are statistically different. Also the findings indicated that there is significant relationship between firms’ life cycle and credit rates and distinguished through discriminant analysis that using this method and estimating discriminant functions can determine the credit rate of firms with the accuracy of 97.7 percent.