CreditModel 2.5 provides actionable information to support risk management for banks, corporations and asset management firms globally
In response to heightened market volatility and uncertainty requiring companies to more closely evaluate the creditworthiness of borrowers, counterparties, customers and suppliers, S&P Capital IQ, a business line of The McGraw-Hill Companies (NYSE: MHP) that offers global multi-asset class data solutions, market research and portfolio risk analytics to global investors, today announced significant upgrades to CreditModel. CreditModel is a widely used risk-evaluation tool that provides an easy, efficient and cost-effective method to help users evaluate an organization’s credit quality by generating credit scores in lowercase letter grades for both public and private firms globally.
CreditModel 2.5, developed by S&P Capital IQ’s Analytic Development Group (ADG), can quickly screen rated and unrated borrowers, counterparties, customers, suppliers in 227 countries across virtually all industrial and utility companies to determine the credit strength of a single company or portfolio of companies. With an enhanced statistical engine and added early warning signals, CreditModel 2.5 provides improved performance accuracy. New country risk scores developed by S&P Capital IQ in order to reflect the risk of doing business in a given country enabled the expansion of corporate credit scores from just developed countries to a larger universe of countries and economies globally. Additionally, CreditModel 2.5 now includes scoring models for commercial and savings banks as a first phase toward a scoring model with global coverage for all types of financial institutions.
“We have enhanced CreditModel to be a powerful and transparent globally applicable product for credit analysts capable of providing early warning signals that should help clients sleep better at night,” said Marcel Heinrichs, head of the Analytic Development Group (ADG) at S&P Capital IQ. “With CreditModel 2.5 clients can do sensitivity analysis or genuine stress testing - including ‘black swan’ events - and generate stressed credit scores, both with and without the impact of a (stressed) sovereign rating.
CreditModel 2.5 also provides probability of default observations for each credit score, sensitivity ranks that show which financial has the largest impact on changes in a current credit score; and comprehensive financial reports with a credit risk assessment in a pdf format.