HONOLULU, March 9, 2005: Kamakura Corporation reported today that its monthly index of troubled companies in the United States remained strong in February, rising very slightly to 13.0% of the public company universe. The Kamakura troubled company index was up from 12.9% in January. Kamakura classifies any company with a default probability of more than one percent as troubled.
"The Kamakura troubled company index remained at low levels typical of the best part of the credit cycle again in February," commented Dr. Donald R. van Deventer, Kamakura Chairman and Chief Executive Officer. "The number of companies with default probabilities between 1% and 5% was 7.8% of the public company universe, down slightly from 7.9% in January. Companies with default probabilities between 5 and 10% were unchanged at 1.9% of the universe. Companies with default probabilities between 10% and 20% were up 0.2% to 1.5% of the universe. The riskiest firms in the universe, those with default probabilities over 20%, were unchanged at 1.8% of the universe in February."
Kamakura is offering free trials of its KRIS default probability service to qualified institutions. For more information on Kamakura's free trial offer please visit the Kamakura Corporation web site. Additional information can also be found in Advanced Financial Risk Management (John Wiley & Sons, 2004) by Kamakura's van Deventer, Kenji Imai, and Mark Mesler available on Amazon. Advanced Financial Risk Management was recently named "best finance book of 2004" on riskbook.com.