The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

S&P Valuation and Risk Strategies Expands Coverage Beyond Rated Universe with Quantitatively Derived Corporate Credit Health Assessments

Share article

S&P Valuation and Risk Strategies, an independent and analytically separate business unit within Standard & Poor’s that provides users with market intelligence and analytic insight for risk-driven investment analysis, announced the launch of a new credit evaluation benchmark on its Global Credit Portal investor analytics platform. Called the Credit Health Panel, the new feature provides a quantitative credit perspective on over 3,000 rated and 23,000 un-rated non-financial public companies.

Designed to give investors a dashboard view of the credit health of a corporate entity relative to a broad set of entity peers, the Credit Health Panel is intended to allow for extensive and efficient counterparty and portfolio risk analysis. Targeted primarily at commercial lending, corporate treasury, and risk management professionals, the Credit Health Panel provides an instant peer comparison and a rapid, market-wide perspective on income, operational, liquidity and probability of default estimates for the largest universe of corporate entities ever addressed by S&P.

Among the key metrics provided by the Credit Health Panel are the following:

  • Overall Credit Health Score: A quantitative analysis of an entity’s cash generation capabilities, operational risks and ability to meet its financial obligations.
  • Probability of Default Score: A forward-looking estimate allowing users to asses default risk within the next 12 months by including financial, industry and macroeconomic factors.
  • CreditModel Score: A quantitatively-derived credit assessment mapped to the Standard & Poor’s rating scale, based upon historical default frequency, which includes fundamentals and equity evaluations.

“With the Credit Health Panel, we’ve created an extensive heat map of corporate credit health that allows investors to quickly evaluate entities relative to their peer groups,” said Lou Eccleston, executive managing director and head of S&P Valuation and Risk Strategies. “By expanding well beyond the Standard & Poor’s rated universe, we are giving investors of every size the tools intended to help them conduct truly robust risk-driven investment analysis.”

“The Credit Health Panel analyzes 33 key financial metrics across three risk categories (income, operational and liquidity) to give investors a quantitative view of credit performance vs. a peer group,” said Sonia Kim, managing director, S&P Valuation and Risk Strategies. “We’ve made it possible for all investors to conduct a level of analysis in minutes that would have previously been cost- and time-prohibitive for the most sophisticated credit analysts.”

The Credit Health Panel is available to Standard & Poor’s customers worldwide through the S&P Global Credit Portal.

Related content

WEBINAR

Recorded Webinar: Data Standards & Identifiers: Where are they helping and what more can be done?

Beyond regulatory compliance, what are the opportunities for leveraging standards to improve operational efficiencies? Financial institutions are starting to realise there are clear benefits in taking a strategic approach to data standardisation as they move to more data driven approaches which require good quality, accurate data for analytics and AI programmes. This webinar will review...

BLOG

Insight: How to Adapt your Data Strategy to Changing Times

As the debut Data Management Summit Europe Virtual from the A-Team Group fast approaches (book your place here), and as the ongoing complexities of operating in a post-COVID 19 world start to become clear, it is imperative that firms evaluate their current approach to data management in order to identify the emerging gaps in their current provision, and...

EVENT

Data Management Summit USA Virtual

Data Management Summit USA Virtual will explore how sell side and buy side financial institutions are navigating the global crisis and adapting their data strategies to manage in today’s new normal environment.

GUIDE

Regulatory Data Handbook 2014

Welcome to the inaugural edition of the A-Team Regulatory Data Handbook. We trust you’ll find this guide a useful addition to the resources at your disposal as you navigate the maze of emerging regulations that are making ever more strenuous reporting demands on financial institutions everywhere. In putting the Handbook together, our rationale has been...