S&P and RDB launch SME CreditModel in Japan

Standard and Poor's (S&P) Risk Solutions and the Risk Data Bank of Japan (RDB), a credit risk data provider, have launched a new advanced default probability model that assesses the creditworthiness of small and medium-sized (SME) Japanese enterprises.

Called Chusho Kigyo (SME) CreditModel, the system is a risk management tool that estimates the likelihood of credit default by companies with sales of less than ¥10 billion ($8.42 million). It enables lenders and portfolio managers to evaluate whether prospective SME borrowers meet credit standards, determines optimal pricing for SME lending, and estimates capital allocation levels.

"The launch of Chusho Kigyo (SME) CreditModel is particularly relevant to Japanese banks because they are being

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