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

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 – progress and case studies

Global data standards and identifiers are essential to business growth, market stability and cost reduction – but they can be challenging to implement, while a lack of consistency across jurisdictions has presented obstacles to global take-up. However, with regulators starting to sit up and take note, the issue of data standards is coming increasingly to...

BLOG

DSB Opens First Consultation on UPI Fee Principles

The Derivatives Service Bureau (DSB) opened a first round of industry consultation on fee principles for the Unique Product Identifier (UPI) today. The consultation ends on 5 March 2021 and is the first of two consultations before a final report is published in September 2021. The UPI will come into play in 2022 and will...

EVENT

Data Management Summit London

The Data Management Summit Virtual explores how financial institutions are shifting from defensive to offensive data management strategies, to improve operational efficiency and revenue enhancing opportunities. We’ll be putting the business lens on data and deep diving into the data management capabilities needed to deliver on business outcomes.

GUIDE

Best Practice Client Onboarding

Client onboarding is central to the success of banks, yet it continues to present challenges and the benefits of getting it right are difficult to achieve. The challenges arise from siloed systems, manual processes and poor entity data quality. The potential benefits of successful implementation include excellent client experience, improved client acquisition and loyalty, new business opportunities, reductions in costs, competitive advantage, and confidence in compliance.