S&P Capital IQ And Risk Data Bank Update SME Credit System
Tokyo, May 20, 2015 – S&P Capital IQ, a leading provider of multi-asset class research, data and analytics, today announced the rollout of its updated Chusho Kigyo (SME) CreditModel system, which assesses the credit risk of Japan's small and midsize enterprises (SMEs).S&P Capital IQ developed the system in partnership with Risk Data Bank of Japan Ltd. (RDB), the nation's largest database consortium.
SME CreditModel was developed from data on loans extended by RDB members to SMEs. The system can calculate the probability of default (PD), deviation value score, and credit rank of a company based on two consecutive years of financial data on scored companies.
Since the launch of the system in March 2003, RDB and S&P Capital IQ have annually evaluated model performance and made ongoing refinements. The latest release, representing the widely used CreditModel system’s third generation, was developed using RDB’s rich store of data consisting of more than 10 years of history, including the period of the global financial market turmoil, from 2008-2010.
”The model brings together the global analytical expertise of S&P Capital IQ across the credit spectrum with the largest and most accurate data set on SMEs by RDB, a leading provider of statistical models” says Clemens Thym, Managing Director in S&P Capital IQ. It leverages the strengths of both partners in a way that adds unique value to financial institutions and corporates that manage SME credit risks”.
The existing SME CreditModel is applicable to general corporates in Japan. Its industry coverage has been expanded to include non-financial institutions’ data in response to the customer demand. S&P Capital IQ will begin rolling out its new system in June 2015.
About S&P Capital IQ
S&P Capital IQ, a part of McGraw Hill Financial (NYSE:MHFI), is a leading provider of multi-asset class and real time data, research and analytics to institutional investors, investment and commercial banks, investment advisors and wealth managers, corporations and universities around the world. S&P Capital IQ provides a broad suite of capabilities designed to help track performance, generate alpha, identify new trading and investment ideas and perform risk analysis and mitigation strategies. Through leading desktop solutions such as the S&P Capital IQ platform, enterprise solutions such as S&P Capital IQ Valuations, and research offerings, including Leveraged Commentary & Data, Global Markets Intelligence and company and funds research, S&P Capital IQ sharpens financial intelligence into the wisdom today's investors need. For more information visit: www.spcapitaliq.com.
About The Risk Data Bank of Japan Ltd. (RDB)
RDB is a database consortium composed of more than 65 banks, including four major banks and regional banks, sharing credit standings and financial data. Since its establishment in April 2000, RDB has accumulated over 5.1 million financial data items on about 819,000 domestic enterprises as of March, 2015, and has offered them to member banks. RDB provides an anonymous database designed for highly developed credit risk management, based on statistical and quantitative approaches. Unlike public credit research companies, RDB does not hold information that identifies companies, such as specific names or locations.
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