Banking book risk management solutions from Algorithmics and credit data products from Standard & Poor's to form powerful combination
TORONTO/VIENNA, Austria, Nov. 8 /CNW/ - Algorithmics Incorporated, a worldwide leader in enterprise risk management solutions, and Standard & Poor's announced today that the two firms intend to bring added value to their respective customer bases by integrating their credit risk products, and jointly selling and marketing a combined solution. The agreement will be non-exclusive and involves integrating Standard & Poor's products including CreditModel(TM), CreditPro(R), Standard & Poor's Ratings Express and the PMD Loss/Recovery and Leveraged Comps Databases with Algorithmics' credit analytics products, including Algo Portfolio Credit Risk Engine (PCRE) and Algo Credit eValuator (ACV).
"Implementing advanced credit risk applications and ultimately supporting the BIS II regulatory requirements requires the integration and management of substantial credit data. This initiative involves designing interfaces to aid the transfer of credit risk data from various Standard & Poor's credit products into Algorithmics' banking book products," said Scott Aguais, Director, Credit Risk Solutions at Algorithmics. "Typically, the PCRE and ACV interfaces formulate requests for and execute transfer of credit data, including ratings, transition matrices, default probabilities and loan pricing information from various Standard & Poor's credit products. We have agreed to work with Standard & Poor's in designing these interfaces to support an integrated solution. The overall solution opens up to Standard & Poor's customers another option for leveraging the excllent data provided by Standard & Poor's with Algorithmics' first-class credit analytics including our portfolio and valuation engines. Our banking book customers will gain smoother integration of their data and analytic solutions through these customized interfaces," added Aguais.
"Our mutual customers and prospective clients deserve the best in seamless and transparent credit risk solutions, utilizing the best possible credit data and analytic products. This is exactly what we want to deliver," said William Chambers, Managing Director, Standard & Poor's.
"Credit data and a solid framework for analyzing it are a key implementation concern for regulators and banks alike and the scope of data coverage, ranging from sovereign to large- and medium-sized corporates, as well as loss and recovery data that Standard & Poor's provides, bring confidence that quality and coverage is not an issue," said Aguais. Chambers added that, "the range and power of the Algo products, including ACV and PCRE, further enhance the reputation of Algorithmics' enterprise-wide credit risk framework."