Rating Advisory

Rating Advisory

The financial crisis has highlighted the necessity for organizations to appropriately assess the extent to which counterparties are capable of meeting their obligations. Determining the creditworthiness of companies requires considerable knowledge, especially of risk models and appropriate software.

For an assessment of the creditworthiness of a counterparty requires access to a substantial amount of specific data. We cut through credit complexity by offering advanced credit rating solutions that integrate models, software and data into one application. In addition, we advise on credit risk policies and customized modeling.

Reports

We offer various credit rating solutions, which have been developed in close cooperation with Bureau van Dijk, a leading provider of company information and business intelligence. Our rating reports give an assessment of creditworthiness of a counterparty or a company’s own rating (to be used for financing purposes), including peer and scenario analyses. We also offer sustainable banking reports, in which the creditworthiness of an individual bank is assessed, combined with an Environmental, Social and Governance (ESG) scoring provided by Sustainalytics.

Rating Models

We offer rating models that can be used off-the-shelf, but can also be customized to meet specific needs. Our flagship corporate rating model, the EAGLE, provides an in-depth credit risk assessment of SMEs, large corporates and multinationals globally. Click here to read more about the EAGLE model, or see our brochure. Other rating model solutions include:

  • Subsidiary Rating & Pricing (SRP) Model: the Zanders SRP model is designed for ‘arm’s length’ subsidiary intercompany ratings and loan pricing.
  • FALCON: the FALCON model scores companies on credit riskiness, based on data of 180 million companies.
  • Industry Scoring Model: the Zanders Industry Scoring model can be used to detect forward-looking industry-specific trends and outlooks.

Advisory Services

We perform independent validations and reviews of credit rating models and advise on the implementation of customized credit risk models – probability of default (PD), exposure at default (EAD) and loss given default (LGD) – for rating of, among others:

  • Multinationals/corporates;
  • Small and medium-sized enterprises (SMEs);
  • Trade and commodity finance;
  • Project finance.

Other rating advisory services include setting up a PD scale, model override policies, credit limit setting, portfolio management dashboards and advice on IFRS9 impairments. Furthermore, for companies aiming to obtain a public rating from a rating agency, we provide pre-rating advice and support with the procedure towards obtaining the rating.

Interested in Rating Advisory?

Evert de VriesGerbert van Grootheest
Get in touch with Evert de Vries or Gerbert van Grootheest for more information about Rating Advisory.