Score credit the right way.
Institutions can no longer rely on credit ratings alone in determining creditworthiness of investments. Specifically, regulators now expect a more in-depth and periodic analysis of the municipal bond portfolio. Unfortunately, there are several challenges many banks face when trying to perform this type of analysis in-house or even using some third parties:
- The range of available information for a particular security varies greatly.
- The information usually comes from a variety of sources.
- It is difficult to synthesize all available information and objectively determine credit quality.
- Most third party information is incomplete providing only demographic or financial data without a grading scale.
It’s our mission to stay on top of these challenges, and our firm has developed a credit quality scoring model. We use a weighted multi-factor grading approach that assesses several key credit factor components. When it comes to reviewing credit, we don’t take chances. You shouldn’t either.