Credit Assessment and Origination Services

Integrate, Synthesize, Drive Value

Credit Assessment & Origination (CA&O) Services maximizes clients' return on software investment. We enable faster, better informed credit decisions through a holistic and consistent assessment of risk. Origination advisory helps integrate systems, data, and processes with existing infrastructure to create a unified credit decision platform. This enables end-to-end origination business unit efficiency and management of credit decisions, using improved risk-adjusted returns as a key performance metrics.

Implementation & Training   Covenant Tracking 

Our experienced team provides you with services to help you develop the knowledge and deploy the technology critical to managing your credit business.

Limits Modeling & Implementation

Interface Development

Spreading Template Development

Technical Training

 

Incorporate covenant information into a credit decision platform to ascertain any violation of the covenant limits

Generate covenants from your own method or from PD and LGD scoring or credit committee guidelines

 

 

     
Risk-Based Pricing   Limits Modeling & Implementation
Incorporate objective assessment of risk into each credit decision by incorporating a capital (i.e., economic or regulatory ) or Risk Weighted Asset (RWA) cost

Design risk-based pricing models, ranging from models that use look-up tables to models that interface with loan portfolio management software, and dynamically assess a capital charge to determine the price for an individual exposure

Validate and improve existing pricing models using Moody’s data and methodologies
  Allocate, manage, and monitor exposures and capital by establishing dynamic, risk-based limits to prevent taking excessive risk

Implement processes to generate limits based on correlated portfolio behavior, either from your own method or linked to regulatory or economic capital and/or as a function of PD levels

Limits are further adjusted by credit committee, economic capital or Risk Adjusted Return on Capital (RAROC) inputs for allocation decisions

Validate internal limit setting methodologies to ensure they are reliable and meet internal and external/regulatory mandates
     
Credit Quality Framework   Client Hierarchy and Links
Develop PD and LGD models for counterparties and exposuresCalibrate Credit Rating Methodologies and Credit Scorecards Integrate the critical building blocks of cost of funds, capital, loss expectations, and returns with collateral allocation decisions -- helping clients make more efficient credit decisionsCompare a client’s internal model-derived PD with multiple PDs from other sources to better differentiate the risk of counterparties
  Design a client relationship hierarchy to accurately account for relationship/obligor chains in multiple joint ownerships, directorships, co-dependencies, and government-linked associations

Link developed hierarchies automatically to covenant and collateral valuation and rating systems, resulting in consistent rating and pricing for subsidiaries of group-level obligors

     
Credit Workflows Process   Collateral Allocation 
Design and implement client-specific workflows

Increase efficiency of their underwriting process, leading to more profitable loans/investments and higher client satisfaction
  Develop robust collateral management frameworks to minimize potential losses due to poor collateral performance and price deals 
 
   

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