Credit risk management is one of the most material risks impacting financial institutions in post-crisis world. The major cause of serious banking problems continues to be related to lax credit standards for borrowers and counterparties, lack of attention to portfolio risk management and other circumstances that can lead to deterioration in the credit standing of an institution's counterparties. To manage credit risk, institutions should identify, measure, monitor and control credit risk as well as determine that they hold adequate capital against credit risk and that they are adequately pricing for risks incurred.
Asymmetrix two-dimensional Corporate Rating Systems help institutions to identify borrower and transactions risks to quantify Probability of Default and Loss Given Default for its exposures to corporate counterparties.
Borrower rating system allows for differentiating the degree of default risk inherent in transactions with corporate counterparties. Rating models for Large Corporates, SME, Trading Companies, Project Finance, Financial Institutions etc. are available through a common web-based rating interface.
Facility Rating System estimates the loss that would be incurred on an exposure, if a counterparty defaults. A-FRS is pre-configured with F-IRB compliant LGD computation method. Corporate AIRB LGD model can also be hosted on the same platform. The rating system has an integrated module for recovery and limit utilization data collection for defaulted exposures for internal LGD and CCF estimates required under AIRB guidelines.
Two-dimensional rating system is compliant with requirements of Basel II IRB guidelines.
An integrated dashboard provides standard reports required at facility, borrower and portfolio level.
Integrated financial spreading module ensures that financial rating parameters are computed automatically from borrower's financial statements. It also builds an internal repository of comprehensive financial information of the borrowers in the credit portfolio.
Borrower rating system allows the institution to build and deploy new corporate models as well as host existing models.