Kamakura Reports Strong Improvement in December Corporate Credit Quality Troubled Company Index Falls to Low Levels of Early 2004

HONOLULU, January 6, 2004: Kamakura Corporation reported today that its monthly index of troubled companies in the United States showed strong improvement in December. Kamakura reported that the troubled company index fell to 12.0% of the public company universe in November, down 1.6% from the previous month. Kamakura classifies any company with a default probability of more than one percent as troubled. This is the largest monthly drop in the troubled company index since it reached its peak of 30% in March, 2003.

"The improvement in credit quality that began in November continued each week throughout December," commented Dr. Donald R. van Deventer, Kamakura Chairman and Chief Executive Officer. "Except for the most troubled companies, all components of the troubled company index showed significant monthly improvement. The number of companies with default probabilities between 1% and 5% was 7.0% of the public company universe, down from 7.8% in November. Companies with default probabilities between 5 and 10% were down to 1.6% of the universe from 2.0% in November. Companies with default probabilities between 10% and 20% also improved 0.4% to 1.2% of the universe. The riskiest firms in the universe, those with default probabilities over 20%, increased slightly to 2.3% of the universe, up 0.1%."

Kamakura is offering free trials of its KRIS default probability service to qualified institutions. For more information on Kamakura's free trial offer please contact Kamakura at info@kamakuraco.com . More information can also be found on the Kamakura Corporation web site and in Advanced Financial Risk Management (John Wiley & Sons, 2004) by Kamakura's van Deventer, Kenji Imai, and Mark Mesler. Advanced Financial Risk Management was recently named "best finance book of 2004" on riskbook.

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development