Development of Altman Five-Factor Model of Assessing the Creditworthiness of an Enterprise

In this paper, we propose a method that uses the apparatus of the theory of fuzzy sets, together with the five-factor model of Altman to assess the creditworthiness of an enterprise. Altman’s model is enhanced in two ways: applies integral approximation of the root mean square for the exact calculation of quantitative credit assessment (probability of bankruptcy), and applies the device of fuzzy sets for ordered sets according to the degree of confidence in the resulting probability. Some real examples of the methodology of applications are shown. The article is theoretical in nature, the findings made in the mathematical model have not been tested on a sufficiently large number of enterprises.