Credit Research & Risk Measurement

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1 Credit Research & RISK MEASUREMENT Credit Research & Risk Measurement

2 Leverage the market standard in credit analysis and utilize the latest risk management technology to improve the efficiency of your team and make better credit investment decisions. TODAY S CHALLENGES Whether your goal is to identify and monitor key investments or meet the demands of regulators, conducting credit research and risk measurement can be daunting. You are frequently required to make sense of multiple credit signals, tackle converging industry sectors and address the rising interdependency between asset classes. In the face of increasing market volatility and complexity, it is more important than ever to have access to timely information and knowledgeable professionals that can help you identify, understand and monitor key risks. Credit Research & Risk Measurement solutions from Moody s Analytics give you the scale and scope to respond to ever-increasing demands on your limited resources.

3 Credit Research & Risk Measurement DELIVERING MULTIPLE PERSPECTIVES ON CREDIT RISK By combining qualitative analyses with quantitative approaches that create early warning systems, economic stress tests that help you understand tail risk, and market indicators that suggest what your peers think, you can be confident in the accuracy of your analysis. Multiple Perspectives on Credit Research & Risk Management Credit Research Market Knowledge credit research In-depth research reports on specific industries, companies and deals are just the beginning. Insight into Moody s transparent ratings methodologies and globally comparable ratings frameworks will help you to benchmark your own opinions on credit risk and establish best practices within your team. Our solutions give you access to the same data, ratios, models and rating methodologies created by Moody s ratings analysts, allowing you to obtain insight into their thought process. Market knowledge Understand market sentiment and take advantage of the information captured in CDS, bond and equity prices without introducing significant volatility into your monitoring system. Our tools isolate changes in risk for individual issuers from the noise of the markets by comparing the signals for a given company to comparable groups of companies using agency ratings. This completely transparent, straight-forward approach allows you to identify and analyze early warning signals from the market. Credit Analysis, Monitoring & Valuation Quantitative Insight Economic Understanding Quantitative insight Detect credit deterioration early and focus your analysis on your riskiest exposures. As the pioneer in quantitative credit risk measurement, we enable you to use market, financial and other data sources to set up effective credit monitoring systems. Built around the KMV Expected Default Frequency TM (EDF) credit measure, an industry standard for measuring probability of default, our quantitative tools accommodate companies that are public and private, large and small, worldwide. Integration with portfolio management, data collection and valuation tools is seamless. Economic Understanding Incorporate a variety of economic assumptions into your credit analysis framework to conduct stress testing and scenario analysis. Convert ratings into forecasted default and rating migration probabilities. Analyze and accurately forecast the future performance of consumer loan portfolios. The tie between credit risk and economic cycles is clear, and our tools allow you to translate this understanding into actionable information.

4 Moody s Analytics Support Add to your team more than 1,000 seasoned credit analysts with expertise across all industry sectors, asset classes and geographies. Acquire the resources and knowledge to track more than 11,000 corporate issuers, 25,000 public finance issuers and 100,000 structured finance obligations. Enjoy access to the most extensive credit-focused event program in the market and take advantage of opportunities to build relationships with analysts, network with peers and hear the latest views on market issues. Take advantage of over 20 years of quantitative credit modeling expertise and one of the largest and most comprehensive credit risk databases in existence. Speak with our credit strategists to understand market dynamics and work with our economists to understand how the nuances of specific regions might influence your scenario analysis. OFFERING PERSONAL SUPPORT Credit Research & Risk Measurement solutions from Moody s Analytics include the tools and data used by Moody s ratings analysts to monitor and assess credit risk, the models behind our award-winning software, and the support you need to take full advantage of these capabilities. Market Participant Reports Analytical Tools Data Analyst Access Events Professional Services Better Credit Decisions We Provide Opinions that Move the Market Over 40,000 leading market participants rely on Moody s Analytics for critical input into their investment and risk management decisions. These include institutional investors, fixed-income credit professionals, risk professionals, equity market participants, commercial lenders and underwriters. Whether you are looking for a stable, through-the-cycle measure of credit risk or a more dynamic approach, Moody s Analytics can address your needs. We offer several forwardlooking metrics, snapshots of current market sentiment and robust historical data.

5 CREATING A SOLUTION In addition to providing a comprehensive set of credit risk measures and research, we also offer some of the most robust datasets and software on the market. Use our solutions, combined with our professional services, to create your own credit risk measures and train your teams. Data & Software Services Obtain default data that extends back to the great depression; access data feeds of both current and historical ratings; leverage platforms that allow you to slice and dice economic data and spread financial data, adjusted to be globally comparable using advanced software. Providing the Data & Software You Need to Find Answers» How can we build quality PD and LGD measures on low default portfolios?» How can we ensure that data is captured consistently across the company?» Where can we obtain data to support objective external testing and validation? Risk Management Services Moody s Analytics Risk Management Services can work with you to build internal credit risk assessment systems and the appropriate set of supporting scorecard templates to evaluate probability of default and loss given default across sectors. Offering the Expertise Required to Keep Up With Market Changes» When should we update models and approaches to adapt to market changes?» What are the industry best practices and innovations in credit risk assessment?» How do we apply outcomes of risk rating systems to make better decisions? Training Services Whether you are interested in providing your team with the skills to make sound judgments about creditworthiness, developing an in-depth understanding of the rating practices employed by Moody s Investors Service or gaining a better understanding of advanced financial topics, Moody s Analytics has a training program to meet your needs. Advancing the Skills of Your Team» What tools are appropriate to capture, analyze and make use of data?» How do we build these tools?» What is the appropriate way to capture and assess qualitative risk factors?» How do we overcome internal resistance to collecting data and review procedures? Moody s Analytics: Essential Insight Serving Global Financial Markets About Moody s Moody s Analytics: Analytics Essential Insight Serving Global Financial Markets Moody s Analytics helps capital markets and credit risk management professionals worldwide respond to an evolving marketplace with confidence. The company offers unique tools and best practices for measuring and managing risk through expertise and experience in credit analysis, economic research and financial risk management. By providing leading-edge software, advisory services, and research, including the proprietary analysis of Moody s Investors Service, Moody s Analytics integrates and customizes its offerings to address specific business challenges.

6 CONTACT US Visit us at moodysanalytics.com or contact us at a location below: AMERICAS clientservices@moodys.com EMEA clientservices.emea@moodys.com Asia (excluding Japan) clientservices.asia@moodys.com JAPAN clientservices.japan@moodys.com Copyright 2010, Moody s Analytics, Inc. All Rights Reserved. SP12759/101122/CRRM_001