The Development of Credit Scoring Indicators for Specialized Financial Institution in Thailand


  • Patima Pakpong Ph.D. Candidate in Economic Faculty of Economics, Kasetsart University, Thailand
  • Thana Sompornserm Department of Economics, Faculty of Economics Kasetsart University, Thailand
  • Saksit Budsayaplakorn Department of Economics, Faculty of Economics Kasetsart University, Thailand
  • Rewat Thamma-Apiroam Department of Economics, Faculty of Economics Kasetsart University, Thailand



Credit scoring, Specialized financial institution, Credit rating/Creditworthiness, Credit risk


The purposes of this research were to develop credit scoring indicators for Specialized Financial Institution (SFIs) in Thailand and to apply credit scoring to credit rating and credit risk analysis for Thailand’s SFIs. This research study and analyze data related to credit scoring from leading Credit Rating Agencies (CRA) such as The Public Debt Management Office (PDMO), TRIS Rating, S&P, Moody's and Fitch Ratings .To use qualitative and quantitative data from SFIs in Thailand and related entities organization. There are four main elements that the model structure (Business risk, Financial risks and Macro risks each of consists use qualitative and quantitative data. Indicators and weight values (100%) (Business risks (40%) include of 1) Industrial level (50%) and 2) Enterprise level (50%), Financial risks (40%) consist at the basic financial level (100%) and Macro risks (20%) consist of 1) Macro level (25%) 2) Government-Related Entity (GRE) level (25%) and 3) Medium-Term Debt management Strategy (MTDS) level (50%).

The evaluation criteria use time-series and panel data that cover Thailand’s economic cycle from 2009 to 2019. To analyze SFIs data by using the percentile statistical method to divide credit scores 1-5 (riskiest-best) by  and convert to creditworthiness 1-8 (prime-loss) with the linear regression method by The Z-Score Model (Altman, 1968) as follows:

Model Equations: Z = X1Wα + X2Wδ + X3Wγ + €

The results of the research showed the development of indicators and weight values by dividing risk into business risks, financial risk and macro risk enhance credit rating of SFIs to be more accurate and suitable for the business characteristics of SFIs. The effect of credit rating is also correlated with the possibility of default of SFIs and affects to the overall of the level and management of the Thailand's public debt.


Altman, E. (1968). Financial Ratios, Discriminant Analysis and the Prediction of Corporate Bankruptcy. Journal of Finance, 23(4), 589-609. DOI:10.1111/j.1540-6261.1968.tb00843.x

Andrew, K.., Til, S., & Scott, M.W. (2002). Risk Measurement, Risk Management and Capital Adequacy of Financial Conglomerates. Brookings-Wharton Papers on Financial Services, December 20022003(1). DOI:10.1353/pfs.2003.0005.

Budi, S., Riandi, A.D., Musli, M., & Rasidi, I. (2020). Article Key Performance Indicators of Indonesia State-Owned Enterprise - a Model Using BSC and MBPE. International Journal of Integrated Engineering, 12(3), 115-121. DOI:

Chengcheng, H., Moudud, A., & Kenneth, C. (2010). Review of the literature on credit risk modeling: Development of the past 10 years. Banks and Bank Systems, 5(3), 43-60.

Fritz, F.B. (2016). Contingent Liabilities Risk Management: A Credit Risk Analysis Framework for Sovereign Guarantees and On-Lending (Country Experiences from Colombia, Indonesia, Sweden and Turkey). World Bank Policy Research Working Paper, No.7538.

Hand, D.J., & Jacka, S.D. (1998). Credit Scoring, Statistical Techniques and Evaluation Criteria: A Review of the Literature. Intelligent Systems in Accounting Finance & Management. London.

Santi, C., & Prasopchok, N. (2017). Assessment of fiscal transparency of non-financial enterprises for fiscal sustainability. Faculty of Economic Development, the National Institute of Development Administration. (In Thai)

Somboon, S. (2015). Credit Scoring System for Managing Risk in Agricultural Loan Portfolio of the Thailand Rural Financial Market. Applied Economics Journal, 22(1), 27-50. (In Thai)

The State Enterprise Policy Office (2017). List of state-owned enterprises in the supervision of ministries. Retrieved from (In Thai)

The Public Debt Management Office (2005). Public Debt Management Act B.E.2005 and amended. Retrieved from (In Thai)




How to Cite

Pakpong, P., Sompornserm, T. ., Budsayaplakorn , S., & Thamma-Apiroam , R. (2022). The Development of Credit Scoring Indicators for Specialized Financial Institution in Thailand. Community and Social Development Journal, 23(2), 15–32.



บทความวิจัย (RESEARCH ARTICLE)