Archives: Product Roadmaps

Scenario-Conditioned Probability of Default (PD)

Understand how a company’s Probability of Default (PD), Implied Rating and Early Warning Signal would change under various macro scenarios. There are multiple preset scenarios made available by Moody’s Analytics, these scenarios are: Baseline, S1, S2, S3, S4.

EDF-X Assistant

EDF-X Assistant is a conversational artificial intelligence platform designed to enhance your expertise and efficiency in credit risk management and revolutionize your EDF-X experience.

  • Powered by advanced large language models, you can rely on for EDF-X knowledge and analytics.
  • User-friendly interface for effortless navigation and interaction.
  • Supports multiple languages, improving understanding.

Create & Monitor Bond Portfolio

Users will be able to create a portfolio of bonds using multiple identifiers, and monitor its constituents via:

    • Searching by ISIN, CUSIP, Name
    • Sorting by Terms & Conditions, Pricing and value metrics (Fair Value Spread, Alpha Factor, Option Adjusted Spread)

    Bond Screener

    Users will be able to identify the bonds that meet the criteria of choice, and download the results into reports, or even into new portfolios that can be monitored.

    Peer Group Analysis

    Users will be allowed to adjust peer groups for their entities not only based on Moody’s NDY codes, but also on NACE and NAICS codes. Peer trigger values will be pre-calculated and saved to enhance the performance of early warning signals.

    Scenario Analysis at Portfolio Level

    Users will be able to shock their portfolios by macroeconomic assumptions or climate scenarios. Results will display aggregate and company-level probability of default (PD), in addition to the forecasted financials.

    RiskCalc 5 – API & Report Builder

    • We will be introducing our enhanced private credit risk assessment model “RiskCalc 5.0” to enhance the accuracy and performance for private company coverage globally.
    • The updated risk metrics will be available in the API as well as filters on the report builder module of the EDF-X web platform.
    • Ability to compute a probability of default (PD) with reduced set of ratios: Total Asset and Total Liabilities are the only mandatory fields.

      Credit Sentiment Score (CSS) Enhancement

      The Credit Sentiment Score, which uses machine learning techniques to turn news into daily, quantitative credit relevant risk metrics at the company level, will be enhanced by GenAI to extract a broader range of events including new, positive and developing events and expand its credit relevant event categories from 5 to 30. This new version responds earlier to deteriorating company performance, providing a stronger signal for distress.

      U.S. Sub-Models Addition

      Performance of risk metrics for specific private firms in the United States is enhanced using U.S. sub-models. This enhancement will impact entities including dealerships, not-for-profit, and real estate firms.

      Weekly Refresh of Private Firm Financials

      Financials and risk scores for private firms using Orbis data are now refreshed weekly, instead of monthly.

      Financials Page for Public Firms

      Enhanced Financials page for public companies, showing both Annual and Quarterly data.

      Update Climate API with Moody’s RMS Data

      Through this enhancement, we will:

      • Integrate RMS* physical risk scores to climate engine
      • Improve work-flow for API calls – retrieving model input data from Orbis**
      • Create infrastructure for research to add scenarios more easily
      • Add climate output to the report builder allowing users to retrieve climate conditioned financials and probability of default (PD) in bulk from the UI

      Industry Dashboard

      Upon logging in to EDF-X, users will be able to view Industry/Sector-level analytics. This feature will allow users to deep dive across geography and sectors to find areas of opportunity and risk.

      Benchmark PD

      In an effort to continue to improve our analytics, for companies where we only have firmographic information, we are introducing a more transparent and accurate scoring method. EDF-X will provide a benchmark PD by selecting the best peer group for these firms and using the median point-in-time PD of that peer group. To learn more, please review the FAQ.

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      Macro-Scenario Report

      Climate ProForma

      In addition to existing climate-adjusted probability of default (PD) metrics, download the climate-adjusted financial statements, for single companies or in batch. This feature is currently available only via the EDF-X API.

      Climate API: Projected Financials

      Users can now execute Climate Converter API / Public Firm Climate Results to receive back scenario-conditioned financials along with projected PD and intermediate results.

      Sensitivity Analysis

      Users can alter financial statement line items and receive a recalculated probability of default (PD) based on the supplied values, allowing them to perform a “What-If” analysis related to the target entities financial performance.

      Parent/Group Support Framework

      Understand how a company’s probability of default (PD) would change with adverse, implicit or explicit support from the parent company. With Adverse impact, the subsidiary will have the worse PD of the two companies; with Explicit support, the better of the two will be attributed; in the case of implicit support, you can answer a few question to customize the new PD metrics. The methodology is available in the Help section of the EDF-X platform, and is also covered in API.

      Moody’s Iceberg 1010 (Under Consideration)

      In-App Custom Alerts

      Users can set up monitoring across any/all of their portfolios to receive alert when conditions are met regarding probability of default (PD), Early Warning Signals, trigger levels or against peer percentiles. Define your own risk thresholds and be alerted for any exceptions to those thresholds. The alerts can be defined at single company, or at portfolio level, and can be shared with your colleagues. You can run these as reports on the web application and soon it can be set up as Email alerts for yourself/your team.

      Updated Trade Credit Limits

      Trade Credit Limits have been improved and are now more accurate for large, public companies.

      Pre-Scored Probability of Default (PD) Triggers

      Probability of Default (PD) triggers are now pre-scored, allowing users to change peer groups faster and performing peer analysis more quickly.

      Financials Page Redesign

      The Company Financials page has been redesigned. Now offering a more appealing design that lets you grasp financials and ratio information more easily. In addition, for private companies, when you upload your own financials, the page clearly highlights the items required for the probability of default (PD) calculation.

      Company Profile Page Redesign

      The Company Profile page has been redesigned, offering additional information, such as legal status, other identifiers and website information to help you work on the right firm.

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      Metrics for Integrated Early Warning

      We have added additional credit risk metrics such as Credit Sentiment Score, Deterioration Probability, CDS Implied PD and Moody’s Rating for you to run a better Early Warning Analysis.

      Transfer Pricing Module

      Users can save and re-run specific screening criteria, useful for replaying past analyses with historical or latest data. This is beneficial for regulatory reporting in transfer pricing, as it allows reproduction of an analysis for a specific date.

      Loss Given Default

      The Loss Given Default (LGD) Model determines loss given default credit measures and expected losses (EL) for public and private companies, loans and bonds.

      Qualitative Overlay for Private Firms

      Users are able to extend qualitative overlay and parent support frameworks to private firms.