Navigating Bank Exposures in a Changing Landscape with Generative AI: CreditCompanion™ (Beta)

The S&P Global Ratings report on the Global Banks Midyear Outlook 2025 indicates that while the global banking sector's outlook remains steady, several key downside risks could impact bank ratings, including spillover effects from trade tariffs, escalating geopolitical tensions, weakening financial system infrastructure, and evolving risks from digitalization, AI, climate change, and cyber threats. ^[1]

 As clients strive to manage their bank exposures in this rapidly changing landscape, there is an increasing demand for fast, reliable, and accurate data.

Introducing CreditCompanion™ (Beta)

CreditCompanion™ (Beta) on RatingsDirect® via S&P Capital IQ Pro is a GenAI-powered assistant for credit research that utilizes Natural Language Processing, Large Language Models, and tailored Retrieval Augmented Generation. It efficiently analyzes and summarizes credit insights while leveraging the expertise of S&P Global Ratings' credit risk experts. The tool provides precise summaries on macroeconomic trends, entities, and peers, links responses to relevant documents, and offers timely updates on critical developments to support informed credit assessments.

The following use cases illustrate how CreditCompanion™ (Beta) can support credit risk management in monitoring and assessing bank exposures.

Use Case 1: Macro Analysis and Banking Industry Country Risk Assessment (henceforth BICRA) Outlook

You can leverage prompts on macro analysis to quickly obtain summaries from sector and regional reports on events such as tariffs and geopolitical tensions, enabling early detection of shifts that may affect bank exposures (Figure 1a and 1b).

Figure 1a: Trade Tariff Impacts on Banks

Figure 1b: Countries’ Banking Risk from Trade Tariffs

You can further deepen your perspective through BICRA insights, distilled into key factors that shape the resilience of banks (Figure 1c).

Figure 1c: BICRA Insights Based on Macro Events

Use Case 2: Entity Analysis and Peer Comparisons

From the previously identified subset of countries, you can generate lists of banks in those markets (Figure 2a).

Figure 2a: Generating Lists of Banks Meeting Criteria

You can then drill down with entity-level prompts to uncover credit risks and analyze financial metrics (Figure 2b).

Figure 2b: SWOT analysis on an Entity

You can compare S&P Global Ratings’ analyst peers for the same entity to gain quantitative insights into key strengths and market position, including domestic and international peers for a comprehensive view (Figure 2c). You can also explore qualitative factors described by analysts to deepen understanding and support better decisions.

Figure 2c: Peer Comparisons for a Bank

Beyond entity analysis, you can consider potential sovereign downgrade scenarios that may constrain banks (Figure 2d).

Figure 2d: Insights from Potential Sovereign Downgrade Scenarios

Use Case 3: Unrated Banks Benchmarking

If your portfolio consists unrated bank exposures, you can delve into S&P Global Ratings’ Methodology and Criteria. This saves time to find information for peer comparisons and to locate relevant factors going into credit risk assessments (Figure 3a). 

Figure 3a: Understanding Ratings Component Scores for Banks

You can also analyze the underlying rating components of rated peers to benchmark unrated banks more effectively and enhance internal risk assessments (Figure 3b).

Figure 3b: Benchmarking Unrated Banks Using Ratings Component Insights

Conclusion

Credit risk professionals face the challenge of extracting timely insights from a vast body of credit research while navigating macro shifts, conducting entity analysis, performing peer benchmarking, and assessing unrated banks. CreditCompanion™ (Beta) helps distill this information into concise, actionable intelligence, saving time and enhancing the rigor and consistency of bank exposure assessments.

Disclosures for this article from S&P Global Market Intelligence: https://www.spglobal.com/marketintelligence/en/legal/disclosures#sp-global-market-intelligence

^[1] Global Banks Midyear Outlook 2025, from RatingsDirect® on S&P Capital IQ Pro, S&P Global Market Intelligence. As of July 2025. For illustration only.