Assess credit risk check
The Assess credit risk check helps to identify companies facing credit issues in your portfolio using Moody's EDF-X. The check uses Moody's' advanced methodologies to identify the credit risk for both public and private companies. Companies are scored on a scale of 0-100 for their credit risk score. In addition, the check provides a 1-year point in time probability of default (PD) and the Moody's implied rating.
The check provides the following information:
Credit risk score: Companies are rated on a scale of 0-100, where a higher score means a greater risk.
Peer group: Shows the peer group that the company belongs to and the implied rating.
Credit risk score history: A visualization of the credit risk and the peer group score over a longer period of time.
1-year point in time PD: a 1-year point in time probability of default (PD).
Moody's implied rating: A way to express the probability of default (PD) in the language of credit ratings.
Information used to run this check
The following company profile information is required to run this check successfully:
Company name
Company number (required to generate BvD ID)
Country of incorporation
Overall result of the check
Moody's EDF-X generates a credit risk score calculated using a formula that compares a company's current probability of default (PD) and implied rating to those same metrics 6 months ago. The score is given from 0 to 100, where a higher score means a greater risk. The result is then compared to the Maximum EDF-X score to pass check configured in your smart policy. This returns a pass, fail , or error result.
In the event of a pass or fail result, besides generating the credit risk score, the Assess credit risk check provides a visualization of the credit risk score history and credit risk score details. These details include the data that the credit risk score is derived from, including the PD and the Moody's implied rating.