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Project Finance Scorecard

 

  • Project Finance Credit Assessment Scorecards
  • The Solution

Assess Project Finance Credit Risk

Project finance is a key financing vehicle, especially in times when there is a need for investment in infrastructure coupled with ever tighter government budgets.  Many market participants struggle to reliably evaluate the level of risk related to a project. The challenge comes from the inherent complexity of the asset class and its predominantly qualitative analysis, which is unique to each transaction, as well as availability of sufficient data to capture project defaults.

Assess Project Finance Credit Risk

S&P Global Market Intelligence’s Project Finance Suite provides a general framework for the analysis of Project Finance transactions, regardless of the industry or sector in which they operate, with the use of well-established project finance debt rating criteria. Project Finance Suite comprises Probability of Default (PD) and Loss Given Default (LGD) Scorecards that bring together statistically validated PD and LGD methodologies, quantitative and qualitative risk factors and market benchmarks to build a single, robust assessment framework helping you identify and manage Project Finance credit risks.

Probability of Default Scorecard

  • Off-the-shelf, transparent, intuitive and user-friendly credit assessment framework for project finance analysts
  • Clear methodology to enhance/ complement cash flow- and simulation-based model assessment
  • High performance to help achieve accuracy and granularity
  • Calibrated to PDs calculated using the data from S&P Global Ratings proprietary default database accumulated since 1981[1].


    [1] S&P Global Ratings does not contribute to or participate in the creation of credit scores generated by S&P Global Market Intelligence.


Loss Given Default Scorecard

  • Effective and robust solution in cases where there is no sufficient data to build a purely statistical model
  • Significant savings in regulatory capital: average LGD estimates for most portfolios are considerably below 45%.
  • Model produces an LGD point estimate which can be mapped to any discrete recovery rating scale
  • Internal and external data were used to test the Scorecard performance.

Implement with Confidence

  • Get in-depth credit training on the application of the Project Finance Suite and the methodology behind the scorecards
  • Harness the full power of the solution with year-round specialist support
  • Obtain transparent and in-depth model development and maintenance documentation to help meet regulatory requirements.

Factor ESG into your Credit Risk Analysis

Project Finance PD Scorecard is enhanced to include visualized Environmental, Social and Governance (ESG) analysis, which is part of a holistic approach to assessing credit risk.

ESG factors are considered in detail alongside the traditional credit analysis formalized in the Scorecards, enabling you to estimate the impact of ESG factors on credit risk while working through the regular credit assessment process.

Extensive Sector Coverage

Identify and manage potential default risks of rated and unrated companies, across a multitude of sectors.


Learn more about the Project Finance Scorecard

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