In order to remain compliant with regulations, the client had to complete annual reviews of existing credits as well as new debt originations. The credit analysis of the transactions involved reviewing information from multiple sources such as financial statements and valuation reports. Furthermore, facility and collateral specific information from pre-trade memoranda were also to be incorporated. All information had to be protected due to confidentiality requirements and therefore exchanged via secure content management platform. The information then had to be evaluated holistically by populating into Scorecards providing outputs such as credit scores , probability of default and loss given default measures. In addition to the scorecards, a credit memorandum for every Credit Risk Assessment had to be submitted to client’s Credit Committee for approval.

Credit analysts from S&P Global Market Intelligence have partnered with client’s senior analysts and operational teams to execute the credit risk assessments. An initial kick off meeting was organized and followed by knowledge exchange sessions, which ensured a thorough understanding of the client’s objectives, credit risk policy, and assessment processes.

The S&P Global specialists have undertaken following tasks amongst others, throughout the project:

• Compiled the borrower information in proprietary Scorecards from S&P Global Market Intelligence to calculate risk scores and estimate likelihood of default.
• Used company and facility specific information to calculate Loss Given Default for the transactions.
• Created new and updated existing or credit memorandum for each transaction, including the narrative around a borrower’s operational and financial strengths, risks, and mitigants as well as a credit opinion on their outlook.
• Submitted the credit file for timely review and approval by the Credit Committee.