In response to heightened market volatility and uncertainty requiring companies to more closely evaluate the creditworthiness of borrowers, counterparties, customers and suppliers, S&P Capital IQ, a business line of The McGraw-Hill Companies (NYSE: MHP) that offers global multi-asset class data solutions, market research and portfolio risk analytics to global investors, today announced significant upgrades to CreditModel.
CreditModel is a widely used risk-evaluation tool that provides an easy, efficient and cost-effective method to help users evaluate an organization's credit quality by generating credit scores in lowercase letter grades for both public and private firms globally.
CreditModel 2.5, developed by S&P Capital IQ's Analytic Development Group (ADG), can quickly screen rated and unrated borrowers, counterparties, customers, suppliers in 227 countries across virtually all industrial and utility companies to determine the credit strength of a single company or portfolio of companies. With an enhanced statistical engine and added early warning signals, CreditModel 2.5 provides improved performance accuracy. New country risk scores developed by S&P Capital IQ in order to reflect the risk of doing business in a given country enabled the expansion of corporate credit scores from just developed countries to a larger universe of countries and economies globally. Additionally, CreditModel 2.5 now includes scoring models for commercial and savings banks as a first phase toward a scoring model with global coverage for all types of financial institutions.
"We have enhanced CreditModel to be a powerful and transparent globally applicable product for credit analysts capable of providing early warning signals that should help clients sleep better at night," said Marcel Heinrichs, head of the Analytic Development Group (ADG) at S&P Capital IQ. "With CreditModel 2.5 clients can do sensitivity analysis or genuine stress testing - including 'black swan' events - and generate stressed credit scores, both with and without the impact of a (stressed) sovereign rating.
CreditModel 2.5 also provides probability of default observations for each credit score, sensitivity ranks that show which financial has the largest impact on changes in a current credit score; and comprehensive financial reports with a credit risk assessment in a pdf format.
Separately, with an eye towards providing clients with a significant edge for enhancing their data infrastructure, S&P Capital IQ today announced the launch of its CRM Data Suite, a robust new data management tool powered by S&P Capital IQ's in-house award-winning data and records collection capabilities. The new CRM Data Suite enables master account level roll-ups, accumulation of ongoing business intelligence and, upon request, access to S&P Capital IQ's "people data." Maintained by a dedicated team employing robust entity management practices to minimize maintenance and eliminate duplication of records, it enables clients to seed and power both off-the-shelf and proprietary CRM systems.
"Too often today company CRM processes enable everyone in a company's sales organization to create separate client accounts, resulting in confusion and duplication, not to mention problems synchronizing billing systems and developing a view of the total relationship for a given customer," said Rui Carvalho, MD, S&P Capital IQ. "S&P Capital IQ's CRM Data Suite allows users to setup a master account along with a representation of affiliates and subsidiaries across the global company universe, creating enormous efficiencies, enabling an enterprise view of customer relationships."
The CRM Data Suite provides ongoing maintenance of account infrastructure and business intelligence for CRM implementations, updating information concurrently with S&P Capital IQ's learning of company moves, additions or changes across the publicly held universe. In addition, because of the vast amount of company data bundled from S&P Capital IQ's own extensive data library, the system enables clients to easily get to know their clients by having on-demand access to company intelligence, including name, business description, contact information, and company relationship data, including related entities, subsidiaries and affiliate relationships. Also, the system allows seamless linkage to other key data sets, including key developments, officer and director information, financial data and recent transaction information.
S&P Capital IQ's CRM Data Suite, available via the firm's on-demand solutions, enables users to pull just the data required "as needed" into their applications. The service offers instant access to the most up-to-date data on a robust set of dynamic information covering thousands of global public and private companies. Optional add-ons include data set combinations to complement selling to adjacent markets; people data to enable senior executive outreach; and business intelligence to drive smarter sales decisions.