S&P Capital IQ will go live with a suite of credit risk assessment tools on its online research, data and news platform on Monday, April 29. The credit risk tools are designed to help assess rated and unrated public and private companies and support activities including peer analytics, portfolio reviews and counterparty credit assessments. They can deliver long-term assessment of credit risks as well as daily views of credit risk that initially cover corporate organisations, but will be extended to cover financial institutions.
The addition of credit risk solutions to the S&P Capital IQ desktop platform, which was created after owner McGraw Hill merged Capital IQ and some elements of S&P in 2010, reflects S&P’s expertise in credit and its addition to Capital IQ’s commitment to equities and valuations data.
The solutions include market signals probability of default, which measures early warning signals of credit deterioration on a daily basis to support risk monitoring; and credit model scores, which are quantitatively derived to measure and benchmark credit risk and determine risk based pricing and limit setting.
The company is also offering customisable analysis templates, including a credit surveillance template, that use an Excel plug-in to bring together company fundamental data and credit indicators from the platform in an Excel interface. A credit health panel provides analysis of the credit quality of an entity relative to its peers. This uses fundamental financial metrics to deliver pre-calculated credit risk measures for over 33,000 corporate entities and tracks relative credit health in terms of operational, solvency and liquidity strength.
Viraj Patel, associate director at S&P Capital IQ, explains: “Our credit solutions suite has been designed to help clients work smarter by giving them a tool that can evaluate potential risks with suppliers, partners, customers, funding institutions, borrowers and investments.”
Silvina Aldeco-Martinez, managing director of S&P Capital IQ, suggests the long-term credit risk assessment solution could be used by credit departments in loan organisations, credit underwriters in insurance companies and corporates dealing with commercial risk. The short-term credit risk monitoring and alert solution is expected to be used in many sectors including investment management.
The credit solutions and metrics, which are produced using proprietary credit models, have been in beta test since February and will be available at no extra charge to advanced users of the S&P Capital IQ platform. Looking forward, the company plans to extend existing market signals covering corporates to banking and financial institutions, allow users to specify credit risk monitoring requirements and receive automated alerts, and deliver a suite of models for credit scoring and analysis of the probability of default.