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Calculating the Comdex
To calculate the Comdex, EbixExchange first determines the percentiles for each
rating service. We start by counting the total number of companies rated by the
service. Next we count the number of companies in each rating category. From
that data, we calculate the percentile for each rating category. For Example,
let us take a sample rating service and calculate the percentiles. The Super
Rating Service assigns ratings in five categories, A, B, C, D and E. It has
rated a total of 50 companies as shown below. The percentiles would be
calculated as follows:
| Ratings |
Company |
Percentile |
| A |
5 |
100 |
| B |
10 |
90 |
| C |
15 |
70 |
| D |
10 |
40 |
| E |
10 |
20 |
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50 |
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We repeat this process and construct a table of percentiles for each of the
rating services. Using these tables, we can now calculate the Comdex for a
given company. We take each rating that the company has received, and look up
the percentile in the table for that rating service. Then we average the
percentiles and factor in the number of ratings received to give the Comdex.
NOTE: A company needs to be rated by at least two rating
services to receive a Comdex. The Comdex is based on the ratings issued by the
following rating services: A.M. Best, Standard & Poor's, Moody's Investors
Service and Fitch.
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