Risk Rating Mapping allows your financial institution to evaluate the effectiveness of your internal rating systems and to benchmark rating outcomes to Standard & Poor's rating scale, your own internal scale, or even to a third-party's. The analysis begins with a comparison of commonly rated entities which is supplemented by rating estimates on unrated obligors, and a review of the client's historical ratings performance on default and ratings transition.
Risk Rating Mapping also allows your institution to effectively calibrate internally generated scores to Standard & Poor's globally recognizable letter-grade rating scale. Using a rigorous approach to compare internal rating scales with external scales offers several benefits to institutions, shareholders, board members, and regulators.
The benefits to your organization:
Increases transparency for shareholders, board members, and regulators;
Identifies the strengths and weaknesses of your internal rating system; and
Establishes the foundation for using Standard & Poor's default and ratings performance data to assign probabilities of default to internal ratings.
Our
Rating Scale Services
Risk Rating Scale Development
Enhance your credit risk analysis for loan origination, surveillance, and securitization.
Risk Rating Refinement
Uses mapping to help you identify the strengths and weaknesses of a risk rating system, and ensure that your institution's risk rating systems are accurate and represent industry best practices.
Risk Rating Gap Analysis
Review credit methodologies, rating outcomes, rating definitions, and an organization's rating to identify “gaps” in the organizations processes and procedures.
Related Solutions
Quantitative Credit Models
Commercially available quantitative models for estimating ratings, probability of default, and loss given default.
Credit Risk Data
A comprehensive set of robust and consistent credit loss information; data consortia and management tools.
