RMA's premier source for private-firm financial data now includes a companion publication with average probability of default estimates, cash flow measures, and change in financial position information categorized by industry.
Philadelphia (April 2, 2002) - RMA's premier source for private-firm financial data now includes a companion publication with average probability of default estimates, cash flow measures, and change in financial position information for 450 industries. This addition represents a major content expansion of the Annual Statement Studies, a best-selling RMA product for more than 80 years.
"Line, credit, and risk professionals will benefit from the addition of these benchmarks," said Mark Zmiewski, RMA's director of information products. "The new benchmarks represent the application of the latest in credit portfolio measurement, probability of default, to our extensive financial statement data set. The new benchmarks also add substantial value to the critical analysis of cash flow for small and middle market companies."
The new publication brings together the power of Moody's RiskCalc™ for private companies and the Statement Studies database to provide distribution statistics on one-year and five-year probability of default estimates by industry. "By including RiskCalc™ probabilities of default in its industry statistics, RMA is providing its clients with a new and valuable benchmark for comparing the credit risk of unrated companies against peers in similar industries," said Jim Herrity, senior vice president at Moody's Risk Management Services. Moody's RiskCalc™ uses historical financial and other objective data to derive default probability estimates for individual obligors.
In addition to providing Industry Default Probabilities, RMA's new product includes cash flow measures on a common size percentage scale and change in position information, normalized, year over year, for eight financial statement line items.
Industry Default Probabilities will help in measuring and managing concentrations, limit setting, and diversification strategies. Cash Flow Measures will help in the fundamental credit risk assessment of commercial loan borrowers and prospects. Change of position information will serve as benchmarks for better sensitivity and forecasting purposes.
The cost of Annual Statement Studies is $145 for nonmembers and $59 for RMA members. The companion publication, Annual Statement Studies - Industry Default Probabilities and Cash Flow Measures also costs $145 for nonmembers and $59 for members. More information about Annual Statement Studies and its new companion publication is available on RMA's web site or by calling Customer Care at 1-800-677-7621.
RMA is the only financial services association that specializes in promoting effective credit risk management practices across the entire financial services industry. Its membership consists of more than 3,100 financial service providers. These institutions are represented in the association by more than 16,000 commercial loan, credit, and risk management professionals in 50 states, Puerto Rico, Canada and numerous foreign cities, including Hong Kong, Singapore and London.
Moody's Risk Management Services (MRMS), an affiliate of Moody's Investors Service, is a leading provider of financial software, credit training and both quantitative and judgmental credit risk assessment models. Its client base ranges from community banks to large credit-granting institutions and asset managers. MRMS has offices in New York; London and Reigate, U.K.; Dublin, Ireland; Hong Kong; Walnut Creek, California; and South Bend, Indiana. Additional information about Moody's Risk Management Services and its Moody's RiskCalc™ line of products is available through its web site.
Moody's Investors Service, a subsidiary of Moody's Corporation (NYSE: MCO), is the leading provider of credit ratings, research and analysis covering debt instruments and securities in the global capital markets. The company, with offices in New York, Tokyo, London, Paris, Sydney, San Francisco, Frankfurt, Dallas, Madrid, Toronto, Hong Kong, Singapore, Limassol, São Paulo, Milan, Beijing, and Mexico City, issues ratings on more than 4,300 corporations and 72,000 public finance debt securities issued by corporations and governments in more than 100 nations.
Moody's RiskCalc™ is a trademark of Moody's Risk Management Services, Inc.
For more information, please contact Kathie Beans.