Standard & Poor’s Risk Solutions, a leading provider of integrated credit risk solutions, today announced the launch of Credit Risk Tracker Greece, a comprehensive web-based default probability model for small and medium sized companies in Greece. CRT Greece will significantly enhance credit quality assessments, which will aid pricing decisions for loans and debt securitisations and assist in the more precise allocation of capital for lenders under the requirements of Basel 2.
The data used to develop CRT Greece was aggregated from three leading Greek banks. The default data provided by the banks was standardized and pooled with financial statement data from Hellastat. The quantitative analytical tool developed from this unique default dataset will be the first to provide Probability of Default (PD) assessments for small and medium sized enterprises (SMEs) in Greece – an asset class that has lacked transparency due to the limited financial disclosure obligations for private firms in Greece and a lack of readily available data.
“Standard & Poor’s Risk Solutions is adding value to the Greek market by providing quantitative tools that can serve as the backbone for the evaluation of a middle market company,” says André Salaam, director at Standard & Poor’s Risk Solutions. “True default probabilities serve as an effective common metric for communicating credit risk internally for an organization and externally for regulators and investors.”
Mr. Panos Michalopoulos, President and Managing Director of Hellastat said, “For the first time ever, Greek companies will be able to use forecast reports on their clients’ and suppliers’ creditworthiness situation, hence avoiding the nuisance of assessing past reporting figures on trading conduct whose reliability is often questioned. We are confident that the ever-increasing use of credit risk reports will substantially contribute to the rationalisation and reform of commercial affairs in our country.”
The Credit Risk Tracker for Greece initiative is part of Standard & Poor’s Risk Solutions rapidly developing services in SME credit risk. Since October 2004, similar models for SMEs in France, Germany, Italy, Spain, the UK, the U.S. and Japan have been launched, covering more than 1.4m private companies in Europe. For Greece, Standard & Poor’s Credit Risk Tracker will contain credit scores for approximately 30,000 private Greek companies.