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Moody's KMV to provide HSBC with portfolio manager solution

Written by: Staff

New Delhi, Aug 23 (UNI) Moody's KMV, the world's leading provider of quantitative credit risk solutions to lenders, today announced it will provide HSBC with its Portfolio Manager, a comprehensive solution that provides a methodology for rapid and accurate measurement besides benchmarking of credit portfolio risk.

HSBC can use Portfolio Manager to evaluate portfolio credit risk to economic capital through rigorous measurement of portfolio and benchmark volatility, concentrations and tail risk in support of its global economic capital initiative and its Basel II program.

HSBC serves over 125 million customers worldwide and is one of the world's largest banking and financial services organisations.

''Moody's KMV has a proven track record in successfully partnering with financial institutions to enable them to more effectively and actively assess and consequently manage credit portfolios on an economic capital basis,'' Moody's KMV President Andrew Huddart said.

He added that with Portfolio Manager, HSBC will be able to better examine the economic capital drivers of portfolio credit risk which can feed into the firm's Basel II Pillar 2 regulatory requirements.

Portfolio Manager's power stems from its ability to leverage the deep empirical credit migration data in Moody's KMV EDF(TM) (Expected Default Frequency) credit measures and detailed data on corporate asset correlations through two business cycles.

Alongwith Portfolio Manager, HSBC utilises additional Moody's KMV products -- Credit Monitor, a desktop solution that allows risk managers to assess and manage credit risk for both public and private companies; RiskCalc North America that enables the evaluation of private firm credit risk by combining financial statement and equity market- based information; and Risk Advisor that provides internal ratings framework specifically designed to facilitate Basel II compliance.

HSBC Holdings plc serves over 125 million customers worldwide through some 9,500 offices in 76 countries and territories in Europe, the Asia-Pacific region, America, the West Asia and Africa.

With assets of 1,738 billion dollars as on 30 June 2006, HSBC is one of the world's largest banking and financial services organisations.

Moody's KMV, a wholly-owned subsidiary of Moody's Corporation, is the world's leading provider of quantitative credit risk solutions to lenders, investors and corporations.

Moody's KMV's tools and services provide current default probabilities, recovery estimates, valuations and correlations, and are widely used to assess portfolio risk/return. It serves over 2,000 clients in 80 countries, including most of the world's 100 largest financial institutions.


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