RISKS OF FINANCIAL INSTITUTIONS Credit risk modelling 2c - Altman's Z score model Example. A private company has the following accounting ratios last year: T1 = Working Capital / Total Assets = 0.12 T2 = Retained Earnings / Total Assets = 0.4 T3 = EBIT / Total Assets = 1.2 T4 = Equity / Total Liabilities = 0.9 T5 = Sales/ Total Assets = 1.4 . If the Altman Z score cut off threshold for a credit worthy business is 2.7 or higher, would we accept the company as a borrower? Answer: develop the Z-Score Bankruptcy Model for Private Companies Describe some of the key elements of a bank's organizational structure required to manage credit risk