CECL Model Capabilities
Industry-leading models from Moody’s Analytics help clients assess and manage forward-looking expected credit losses under the CECL standard.
Our models are based on extensive historical data, reasonable forecasts, and defensible scenarios to estimate lifetime credit losses for financial instruments. We produce trusted models for all portfolios, including private and public firms, commercial real estate, small business, consumer products, and structured finance instruments. In addition, we provide expert advisory services such as model customization, calibration, validation, and benchmarking.
Address Your Unique Portfolio Composition with multiple Methodologies
Whether you work for a small institution, or have a large and complex portfolio, our solutions enable you to calculate expected lifetime losses using best-in-class modeling methodology. Our transparent model methodologies produce probability of default (PD) or (EDF™) expected default frequency, loss given default (LGD), and expected credit loss (ECL) measures at the loan or portfolio level. Models are backed by an experienced advisory team, that supports our clients with implementation, applicability testing, and validation support. Clients receive further support from our award-winning client services team.
Gain Confidence with Predictive, Fully Documented Models & Scenarios
Moody’s Analytics modeling solutions are designed to provide realistic loss estimates under various plausible scenarios. Extensive industry credit performance and economic data underpins our models and forecast scenarios, so they hold up against rigorous standards set by auditors and regulating authorities. Validation procedures ensure that our models are working as disclosed, with results that are fully documented. You will be able to calculate expected credit losses and set capital reserves with confidence, using robust and documented models with defensible forecasts.
Benefit from an Integrated Solution
CECL modeling capabilities are part of our Credit Loss and Impairment Analysis Suite, which includes credit risk models and data, economic forecasts, advisory services, and infrastructure solutions that assist with the implementation of expected credit loss and analysis. This modular, flexible, and comprehensive solution can address the many challenges of implementing impairment calculations.