We support our customers in times of transition: The stricter regulation of credit rating agencies (CRA) is aimed at “reducing the dependence on external ratings. Credit institutions, investment companies, insurance companies and company pension schemes are no longer permitted to overly rely on external ratings but need to implement internal processes to validate the credit worthiness of companies and financial products.”
Development of an internal rating tool primarily requires time and resources. The modelling process is highly complex, typically based on an extensive historic data base and has to be approved by the regulator. However, it is possible to break the rating process up into separate process steps and only handle those steps that are deemed essential by the regulator within the organisation. Other steps can be sourced out to external service providers. In this context, Caplantic offers its customers different service packages, e.g. inclusion of the Rating Service Unit (RSU) rating tool in the internal risk validation process.
Our services include the following building blocks:
- Development of an individualised collaborative process for validating risks or generating internal ratings
- Where necessary, inclusion of a BaFin approved rating tool
- Complete execution of individual process steps in the development of internal ratings
- Exact calibration of risks based on a broad and diversified historic data base
- Active support for the adaptation of customer processes, coaching, introduction of processes and transfer of know-how
Caplantic also offers these services for validating the risk of individual investments that are undertaken as part of alternative asset funds (debt funds).