Credit Risk Management

Meet Regulatory Requirements, Minimize Loss and Improve Economic Return.

Moody’s Analytics provides comprehensive Economic Stress Testing and Retail Credit Risk management solutions focused on improving economic return. Our experience includes working with companies worldwide to improve portfolio performance and meet Basel II regulatory requirements.

 

We are the only major provider that is able to adequately account for both noneconomic and economic factors in explaining changes in credit quality. We combine expertise in standard credit risk modeling such as Probability of Default (PD), Loss Given Default (LGD), Economic Capital requirements, and industry-leading economic scenario analysis.

 

As a member of the Moody's family, we often partner with Moody's Enterprise Risk Solutions to provide comprehensive services that span the full spectrum of credit risk. We have extensive experience across all major asset classes including retail loans, mortgages, autos, credit cards, student loans, personal lines; structured pools backed by consumer loans such as ABS, RMBS and CDOs; commercial mortgage backed securities (CMBS); government yield term structure, swap rate term structure, stock market indices, CDS spreads, ratings, rating transitions, money market rates, etc.

 

Economic Shock and Scenario Analysis

As the leader in global economic consulting, we provide rigorous scenario analysis to a wide range of industries. Our robust country and regional econometric models provide the foundation for scenario analysis, including gross shocks, and enable a consistent modeling approach across all asset classes. Our regular country and consumer credit analysis and forecasts provide an unparalleled understanding of each country's credit and business cycle.

 

We offer innovative solutions to modeling portfolio performance that are able to explain variation due to vintage, seasonality, region, non economic factors, and more; forecast performance of existing and future vintages; and design credit scores that more accurately account for business cycle influence, among others. Our deep expertise in consumer credit and its economic drivers, along with leading loss analytic capabilities, provide the most authoritative service available to firms with retail credit exposure.

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