A Financial Institution deploys Analytical Services for Assessing Counterparty Credit Risk

Analysts specialized in credit risk assessment of financial counterparties and alternative investment funds  at S&P Global Market Intelligence (“Market Intelligence”) were engaged to provide third party credit opinion on credit quality of such counterparties including written credit risk reports , of which approximately 40% were for onboarding requests. The team of analysts deployed for this project:

• Leveraged standardized Scorecards available on S&P Capital IQ Pro (a one-stop desktop solution for essential intelligence), supplemented with financial ratios for each industry to aid credit assessments.
• Prepared credit memos that discussed key strengths and risks for each counterparty profile, summarized the stand-alone credit risk profile and provided a forward-looking outlook.
• Conduct periodic surveillance on the underlying assets in the portfolio to capture key material events and their impact on the stand-alone credit profile, which include updating the Scorecards with the latest financial information  at a mutually agreed frequency.

The deliverables are exchanged through a secured ‘e-share’ platform to comply with data protection laws and maintain client confidentiality.