Abstract: Strategic Management of finance is to use balanced scorecard in evaluating performance of creditee. Balanced scorecard covers organizational performance and financial performance. So, financial analysists may measure both organizational and financial performance of creditee firms to analyze their payback credibility of loans. There are two analyses of strategic management. They are internal analysis and external analysis. Both analyses provide of analyzing organizational strength and organizational performance of firm. After apply of balanced scorecard for credit rating, analysists make decisions of releasing financial loan or not. This paper aims to argue use of strategic management in finance theory to include organizational performance analysis in credit rating. With balanced scorecard, analysists apply both organizational and financial performance for firms in credit analysis.

 

Key words: balanced scorecard; strategic management; credit ratings

JEL codes: L10, M16, M37, O11