The CreditPulse bankruptcy watch is a list of companies from the CSI with a high possibility of insolvency. Some 30% of the companies meeting the CSI bankruptcy criteria in the 2007 index actually filed for Chapter 11 in 2009. The following criteria are used in determining which companies make the list:
• Extremely high debts-to-assets ratio
• Extremely low market cap-to-revenue ratio
• Low operating cash flow as a percent of revenue
