History of KMV

KMV (Kealhofer, McQuown and Vasicek) Is Part of Moody’s Analytics Enterprise Risk Solutions
In 2002, Moody’s Analytics acquired KMV, a leading provider of quantitative credit analysis tools to lenders, investors, and corporations. This acquisition expanded Moody’s Analytics credit risk management product offerings and complemented the capital markets credit rating business of Moody's Investors Service.

Building upon the legacy of KMV, Moody’s Analytics remains a pioneer in the sophisticated application of modern financial theory and statistical analysis to manage credit risk more accurately and effectively. Our integrated solutions enable institutions to improve all aspects of their credit processes, from prospecting and underwriting to pricing, syndication, and securitization.

More than 2,000 leading commercial and investment banks, insurance companies, money management firms, and corporations in more than 80 countries use our products and services, including most of the 100 largest financial institutions in the world.

The Legacy of Moody’s KMV
From inception, Moody's KMV – now part of Moody’s Analytics Enterprise Risk Solutions – helped investors, lenders, and corporations understand and adopt the most advanced methods and tools to measure and manage credit risk. KMV’s flagship solution, the EDF™ (Expected Default Frequency) credit measure, was created in the late 1980s and dramatically changed the way credit risk was measured throughout the world. Moody's KMV RiskCalc®, a network of globally comparable private company models, similarly revolutionized the way in which middle-market credit is analyzed both by banks and in the structured finance markets. They also created Moody's KMV LossCalc™, which became the first commercially available predictive model of Loss Given Default (LGD).

Moody’s Analytics Offers the Most Comprehensive Solutions in the Marketplace
Moody’s Analytics maintains the largest public and private company default and loss database in the world. Our researchers use a variety of sources to monitor the international credit markets in search of every defaulted public firm. To identify private firm defaults, we have established partnerships with a large number of financial institutions around the world that provide extensive data on defaults, financial statements, and loan performance details. The Moody’s Analytics database contains 30 years of information on over 6,000 public and 220,000 private company default events for a total of 60,000 public and 2.8 million private companies, healthy and distressed, around the world.

Because of this rich data set, Moody's Analytics is in a unique position to create credit risk models of unparalleled breadth and depth for major markets around the globe. These models are the foundation for our credit risk measurement tools and are recognized as the most accurate measures of default risk and feature the most comprehensive geographic coverage of public and private firms. In addition to providing a resource for model development, this data set also provides a fertile test bed for theoretical and practical credit research, including portfolio and default model validation and benchmarking.

In an effort to advance the state of the art in model validation, the Moody’s Analytics has published numerous papers detailing the testing procedures and results. Clients have published similar, but independent, tests that also confirm accuracy of these models.

Moody’s Analytics also provides education and training services to ensure that our clients understand the complex but essential concepts inherent in advanced credit risk analysis and management. Moody’s Analytics also actively participates in academic research, sponsoring research grants and academic forums.

Find out more about our Enterprise Risk Solutions

CreditEdge
RiskCalc 
LossCalc
RiskAnalyst
RiskFrontier

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RECENT AWARDS
  • Fintech 100 2015
    Fintech 100 2016
    Ranked 22nd in Overall Rankings
  • InsuranceRisk Awards
    InsuranceRisk Awards 2015
    Best Solvency II Software
    Best Economic Scenario Generation Software
  • Asia Risk Technology Rankings 2015
    AsiaRisk Technology Rankings 2015
    #1 in Regulatory & Economic Capital Calculation and Management
  • Chartis RiskTech100 2015 Award
    RiskTech 100 2016
    Voted 7th in Overall Rankings
    Enterprise Stress Testing Category Winner
  • Risk Technology Rankings
    Risk Technology Rankings 2015
    #1 Economic Risk Capital Calculation
    #1 Regulatory Risk Capital Calculation
    #1 Enterprise-Wide Credit Risk Management
  • Risk Technology Rankings 2011 Award
    Crystal Ball Award Pulsenomics