S&P launches new credit scores for 26,000 companies
S&P Valuation and Risk Strategies, part of McGraw-Hill Co's Standard & Poor's, has launched a new credit score tool that lets users compare credit profiles of more than 26,000 companies worldwide.
The so-called credit health panel can provide default probabilities and overall credit health scores for the largest universe of companies ever addressed by S&P, the company said in a statement on Tuesday.
Overall scores will be based on a firm's operational risks and its ability to generate cash and meet its financial obligations. Users can also assess default risks over the next 12 months based on financial, industry and economic factors.
The service is targeted at commercial lenders, corporate treasurers and risk management professionals, Michael Mastropaolo, a director with S&P Valuation and Risk Strategies, said in an interview. S&P Valuation and Risk Strategies is independent from other groups in S&P, including S&P Ratings Services.
With the overall credit health score I think you're getting a unique look at fundamental analysis and I think we're approaching it a little differently than a lot of competitors in the space, Mastropaolo said. Where they might provide just raw financial data, I think we're taking it to the next step and aggregating the data, standardizing and comparing it across the peer group.
The new service will expand coverage to about 23,000 companies that are not now rated by S&P, including large firms such as Apple that do not have debt. About 3,000 rated companies will also be covered. All are nonfinancial publicly traded firms.
(Reporting by Dena Aubin; Editing by Andrew Hay)
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