Challenge

The client's credit risk department was hit by a quiet crisis mid-year. Two credit analysts resigned within a short span of time, leaving a lean team to absorb a heavy review load. While hiring began immediately, recruiting specialized credit talent in the European life and pensions market is rarely fast, and the credit review workload would not pause for the search.

The backlog widened almost daily. New borrower financial statements kept arriving, each one demanding fresh Probability of Default (PD) scoring, updated Loss Given Default (LGD) estimates, and refreshed credit memorandum narratives. With the portfolio heavily weighted toward private credit, unrated debt, and alternative assets backing long-term life insurance and pension funds liabilities, every delayed review carried real counterparty risk implications.

Against a backdrop of intensified European and UK scrutiny on credit risk underwriting, enhanced capital charges on unrated and private credit, and a macroprudential focus on Shadow Banking risk, the regulator issued a firm directive: clear the backlog by year-end. The cost of inaction was severe: potential regulatory fines, additional capital charges, reputational damage, and in an extreme scenario, license implications.

Internally, the pressure was equally acute. The remaining credit team was stretched, morale was at risk, and leadership feared further attrition could compound the crisis. Strategic priorities such as disciplined growth, capital efficiency, innovative M&A and risk transfer solutions risked being eclipsed by an operational firefight. Something had to be done.

Solutions

The client evaluated several knowledge process outsourcing alternatives. S&P Global Market Intelligence was selected based on four key factors: rapid deployment at short notice, deep familiarity with the S&P Scorecards the client already used, minimal ramp-up time, and the confidence in S&P Global Market Intelligence’s established experience in operationalizing Credit Analytics and Scorecards.

Rapid Deployment, Minimal Training

Within days of engagement, a dedicated team of S&P Global Market Intelligence credit analysts was operational. Because the client already used S&P Scorecards, training time was kept to an absolute minimum — the team spoke the same analytical language from day one. A focused kick-off meeting, followed by structured knowledge exchange sessions, ensured a thorough understanding of the client's credit risk policy, assessment methodology, and Credit Committee expectations.

Seamless Integration with Senior Analysts and Operational Teams

The S&P Global Market Intelligence team did not operate as a detached vendor — they worked directly with the client's senior analysts and operational teams. This integrated model preserved the analytical precision and underwriting standards the client would have applied internally, while dramatically expanding throughput.

End-to-End Credit Review Execution

Across the engagement, the S&P Global Market Intelligence specialists executed the full review lifecycle:

• Borrower information compilation into proprietary S&P Scorecards to calculate risk scores and Probability of Default (PD).
• LGD calculation using company- and facility-specific information for each transaction.
• Credit memorandum creation and updates, including narratives on borrower operational and financial strengths, risks, mitigants, and forward-looking credit opinions.
• Timely submission of completed credit files for Credit Committee review and approval.

Outcome

The result was a workflow that felt native to the client: S&P Global Market Intelligence leverages client standards and maintains consistent rigor, simply delivered with the additional capacity and expertise needed to meet the regulatory deadline.

50 annual and initial credit reviews were completed in from mid-September to year-end.

Quantitative Wins

• 50 credit reviews delivered through the Credit Committee within the 3-month window.
• Regulatory deadline met in full, ahead of year-end.
• Minimal training overhead thanks to existing S&P Scorecards alignment, accelerating time-to-productivity.
• Continuity of coverage maintained while 2 new analysts were recruited and onboarded.

Qualitative Wins

• Team morale preserved. The remaining credit analysts were shielded from burnout-level pressure, reducing the risk of further attrition.
• Better positioned for ongoing regulatory dialogue. The client faced stakeholders and the regulator with clear, defensible, fully documented credit files.
• Stakeholder confidence strengthened in the client's risk management practices across the private credit and unrated debt portfolio.
• Strategic focus reclaimed. Leadership returned attention to disciplined growth, capital efficiency, and M&A and risk transfer priorities — instead of operational triage.