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For Immediate Release
Agreement Signed Between Moody's KMV and Lince
To Provide Credit Risk Assessments For Italian Companies
MILAN and SAN FRANCISCO, November 29, 2005 - Lince, a leading provider of economic and marketing information for businesses in Italy, and Moody's KMV, the worldwide leading provider of credit risk measurement and management solutions, today announced an agreement to offer Italian companies a private firm risk assessment service using the credit risk measurement provided by Moody's KMV RiskCalc v3.1 Italy.
The Italy-specific version of RiskCalc is one of 22 country-specific RiskCalc models used worldwide by financial institutions and corporations to assess the credit risk of private firms. Through Lince's website, www.linceonline.com, clients will be able to enter data and receive an immediate RiskCalc measurement output. This online service provided by Lince was developed specifically for the needs of small and medium size companies.
The expertise of Moody's KMV in developing quantitative credit risk analysis solutions, together with the size and depth of Lince's database - comprising over one million annual accounts from Italian companies - provide a tailor-made solution for the small-to-midsized enterprise (SME) market. The offer makes an assessment tool available to Italian SMEs preparing for the new regulations associated with BASEL II.
"With this agreement Moody's KMV and Lince offer Italian companies of all sizes an essential tool to prepare for the new BASEL II regulations," stated Edoardo Romeo, Lince general manager. "With RiskCalc, Italian companies are now armed with a way to properly evaluate their current credit standing as well as measures needed to comply with the parameters of BASEL II, which becomes effective in 2007."
Andrew Huddart, Moody's KMV President, stated "We recognize Lince as a leading Italian data provider, and are thrilled to support Lince's Basel II service to Italian small-to-midsized enterprises with the introduction of RiskCalc Italy private firm Expected Default Frequency credit measures."
The Moody's KMV model for evaluating private firm credit quality, RiskCalc Italy, is based on Italian private firm data and generates a Moody's KMV Expected Default Frequency or EDF-or a company's probability of defaulting over a one to five-year time horizon. The measurement calculated by the RiskCalc model calculates key financial indicators for the company including debt ratio, profitability, debt coverage, growth trend, size and structure of the cash flow. These indicators reflect elements of credit risk that influence the financial reliability of a company.
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