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Scorable Universe Expansion: AI-driven Credit Analytics now predicts rating changes for financial issuers

bondIT’s Scorable continues the expansion of its analytical universe with the addition of nearly 400 of the largest financial issuers in the global debt markets. Scorable’s Explainable-AI now predicts changes in the credit risk profiles and rating transition probabilities of banks and financial service providers across the US, Europe, Asia-Pacific and Emerging Markets.

To determine issuer-specific risk profiles, our purpose-built financial model analyses more than 250 data variables daily including solvency ratios, capital requirements, profitability and efficiency ratios.

Looking at credit risk across all rating classes, 18% of banks and financial service providers currently show a high probability of a rating upgrade and 14% are at significant risk of downgrade in the next 12 months. However, Falling Angels are likely to outnumber Rising Stars: our Scorable Rating Transition model currently indicates a high downgrade probability for 15 BBB or BBB- rated financial issuers, whereas 9 issuers with BB or BB+ rating are likely to be upgraded in the coming year.

Scorable’s latest universe expansion brings the total number of corporate and financial issuers analyzed to more than 3,300 worldwide.