New Moody’s Analytics Early Warning System Helps Identify Credit Risks Faster

Rhea-AI Summary

Moody's Analytics has launched the Early Warning System, a comprehensive platform designed to identify early signs of credit risk. This tool integrates various credit risk indicators, including financial ratios and macroeconomic data, to assist credit professionals in monitoring portfolios effectively. The Early Warning Score synthesizes multiple signals, allowing timely decision-making to prevent value loss. Amid ongoing economic uncertainty, the system aims to enhance business decision-making speed and accuracy.

Positive

• Launch of the Early Warning System to enhance credit risk management.
• Integration of multiple credit risk indicators for timely decision-making.
• The Early Warning Score aids in identifying at-risk companies quickly.

Negative

• None.

Moody’s Analytics today announced its new Early Warning System, which is a single platform that identifies multiple early signals of credit risk to help credit professionals make actionable decisions and more effectively monitor their portfolios.

Accessible from the Moody’s Analytics CreditEdge^TM and RiskCalc^TM solutions, the Early Warning System allows users to quickly identify at-risk companies in their portfolio so that they can take timely action.

The continuing economic uncertainty makes it harder to pinpoint risks. Credit professionals need to tap many, sometimes contradictory signals such as financial ratios, credit ratings, stock prices, probability of default, downgrade risk, macroeconomic data, and news. The new Early Warning Score, a component of the Early Warning System, synthesizes different credit risk indicators (including data from the Moody’s Analytics Credit Sentiment Score^TM solution, an AI-powered interpreter of news sentiment) to provide an overall assessment of credit deterioration. The Early Warning Score, combined with pre-populated financials and automated workflows, helps portfolio managers take action before value is lost.

“In this difficult environment there is an even greater premium on making better, faster business decisions,” said Nihil Patel, Managing Director at Moody’s Analytics. “By integrating multiple credit risk signals into one platform, the Early Warning System helps our customers more quickly identify emerging credit risks in their portfolio.”

About Moody’s Analytics

Moody’s Analytics provides financial intelligence and analytical tools to help business leaders make better, faster decisions. Our deep risk expertise, expansive information resources, and innovative application of technology help our clients confidently navigate an evolving marketplace. We are known for our industry-leading and award-winning solutions, made up of research, data, software, and professional services, assembled to deliver a seamless customer experience. We create confidence in thousands of organizations worldwide, with our commitment to excellence, open mindset approach, and focus on meeting customer needs. For more information about Moody’s Analytics, visit our website or connect with us on Twitter and LinkedIn.

Moody's Analytics, Inc. is a subsidiary of Moody's Corporation (NYSE: MCO). Moody's Corporation reported revenue of $4.8 billion in 2019, employs approximately 11,400 people worldwide and maintains a presence in more than 40 countries.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201216005295/en/

FAQ

What is the Early Warning System launched by Moody's Analytics?

The Early Warning System is a platform that identifies early signals of credit risk to help credit professionals monitor their portfolios.

How does the Early Warning System help in credit risk management?

It integrates various credit risk indicators, allowing users to make timely decisions regarding at-risk companies.

What role does the Early Warning Score play in portfolio management?

The Early Warning Score synthesizes multiple credit risk signals to provide a comprehensive assessment of credit deterioration.

What challenges does the Early Warning System address for credit professionals?

It addresses the challenge of pinpointing credit risks amid economic uncertainty by compiling diverse financial signals.

Is Moody's Corporation involved in the Early Warning System?

Yes, the Early Warning System is a product of Moody's Analytics, a subsidiary of Moody's Corporation (NYSE: MCO).