Enabling the High-Performing
Commercial Lender

Powering Internal Credit Risk Identification and Analysis
S&P Capital IQ offers a comprehensive set of solutions and services for commercial lenders to use in powering their internal credit risk identification and analysis processes. Serving the credit risk needs of thousands of clients globally - from emerging to developed markets - we provide solutions that support the critical tasks associated with your daily workflow. From key risk data and credit risk models for scoring to a detailed analysis of default and recovery, we help you gain important insight on rated and unrated entities at the individual and portfolio level.

Using our solutions, origination, credit risk and risk management professionals can easily and cost-effectively:

  • Identify attractive credit opportunities,
  • Accurately and dynamically parameterize credit risk models
  • Quantify and manage credit risk from many perspectives
  • Support regulatory and market driven stress testing
  • Benchmark credit risk measures to support risk based decision making
  • Decide and document a course of action
  • Conduct timely and efficient credit surveillance
  • Bring independent expertise and scale to risk projects
What Do You Want To Do? How We Can Help:
Identify Attractive Credit Opportunities Using our dynamic screening tools search for target borrowers on a wide range of data points, including risk measures. Once identified, let the Global Credit Portal platform help you conduct peer analysis on a relative and absolute basis looking for business opportunities-including industries, geographies and specific borrowers-that meet your key criteria. Leverage our comprehensive industry and borrower research to help complete your overall view.
Accurately and Dynamically Parameterize Credit Risk Models

Your models, and ours, use financial and economic information to create estimates of a borrower's creditworthiness, probability of default (PD) and loss given default (LGD). Capture inputs to drive the models from our rich data sets on the S&P Capital IQ platform and Global Credit Portal Platform including:

  • Raw fundamental data and spread ratios for rated and unrated entities
  • Fundamental data adjusted for non-recurring charges to enhance comparability
  • Industry and borrower peer group ratios
  • Macroeconomic factors
Quantify and Manage Credit Risk from Many Perspectives

The integration of default and recovery tools with scoring models produces dynamic risk measures.

  • Credit Model generates credit scores using our comprehensive library of industry-specific models covering over 40 countries, including developed and emerging markets.
  • Credit Risk Tracker produces forward-looking PD estimates with a one-year time horizon based on a time series of macroeconomic, financial and industry-specific variables as well as market signals such as stock price volatility or appropriate proxies for both public and private companies of any size.
  • Credit Assessment Scorecards facilitate expert judgment driven probability of default (PD) and loss given default (LGD) assessments to generate internal risk ratings. Using a proven, consistent and transparent scoring framework, our scorecard solutions sit at the core of our clients' regulator approved, internal ratings systems.
  • Loss Stats Model generates forecasts of LGD values by applying an econometric framework to the 4,000+ recovery estimates in our database of ultimate recovery data and distressed debt trading-price information.
Support Regulatory and Market Driven Stress Testing Credit Model can help you determine the anticipated path to improvement or default by evaluating the impact on "normal course of business" of down-turn and up-turn scenarios; Input Sensitivity Ranks show which variable or ratio has the largest impact on changes in the current credit score for the specific scenario. Perform additional "severe scenario" stress testing for less frequently occurring events; automatically adjust financials based on a pre-determined "light" or "heavy" stress scenario and scores will be mapped to stressed PDs for one, three and five years
Benchmark Credit Risk Measures To Support Risk Based Decision Making

Our extensive data enables you to:

  • Analyze empirical statistics compiled in our ongoing credit studies in Credit Pro to assess ratings migration, and default and recovery rates across geographies, regions, industries and sectors
  • Compare results for the rated portion of your portfolio to our detailed credit ratings and research on Global Credit Portal Platform
  • Assess peer group averages with our broad and deep financial statement information and pre-calculated ratios available onGlobal Credit Portal Platform
Decide and Document A Course Of Action

Global Credit Portal Platform and S&P Capital IQ can also help you finalize your opinion and automatically create a wide range of reports covering all the topics you need for a comprehensive credit memo, including:

  • A description of the business and a brief discussion of its future prospects
  • Major rating factors and the rationale behind the model outcomes
  • Graphs of ratings trends, up to three years of CDS history and the sector outlook
  • Detailed tables for ratings and financial peer group comparisons
Conduct Timely and Efficient Credit Surveillance Credit Model and Credit Risk Tracker provide pre-calculated scores and probability of default's enabling timely and efficient surveillance of public and private credits and providing the right early warning indicators and actionable information to drive pro-active credit monitoring.
Bring Independent Expertise and Scale To Risk Projects Our organization offers a comprehensive set of integrated Advisory Services delivered by teams of regionally based experts. From risk frameworks and model validation to benchmarking and outsourced credit analysis, we have the right local skills and capabilities to complement your internal teams. Let us assist with your efforts to achieve regulatory approval, drive capital and liquidity management and to implement and drive risk-based decision making at all levels.
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