Head of Communications
Global Credit Rating for the Evaluation of Leasing Partners
Chicago / Immenstaad (Germany), 06/17/2009 -
Bosch Software Innovations Corp., a leading provider in the market of Business Rules Management Platforms and Financial Industry solutions, today announced that Scania Financial Services chose to implement worldwide the evaluation of business partners and leasing facilities with the Credit Risk Rating Platform and the partner Bosch Software Innovations.
Scania Financial Services (Scania FS) is a business unit in Scania, Sweden’s leading manufacturer of heavy trucks and busses as well as industrial and marine engines. Like the financial service provider of Volkswagen, which is the majority shareholder of Scania, Scania FS has decided to implement its global credit rating application with Innovations as the partner and by using the Credit Risk Rating Platform from Bosch Software Innovations. The web-based application will be available by the end of the year for all 16 business units worldwide and will centrally provide the previously distributed rating logic.
With the new application Scania FS will comply with the different formalities of the countries. "The technology and the expertise of Bosch Software Innovations help us evaluate the default risk and the loss given default of our business partners. This enables us to secure a competitive advantage in the market," said Selina Wang, Credit Risk Project Leader at Scania FS.
Wang said that the reference by the Volkswagen Bank played a role in making the decision to partner with Bosch Software Innovations and use its platform. "However, the crucial factor was that the credit experts in all 45 markets where this central rating system will be used, can use the Credit Risk Rating Platform to individually adjust and maintain their country-specific models from the central model framework of the headquarter in Sweden," reported Wang.
Rating Models for Scania worldwide
At the moment Scania is developing two models with assistance of Bosch Software Innovations for the definition of the probability of default (PD) and the loss given default (LGD) - as a basis for the global evaluation of credit risks. Considering the market-specific characteristics, the platform will have more than 30 rating models when completed. Furthermore, each of the respective CRM systems will be integrated as one step of integrating the application into the existing IT infrastructure.
Platform for Credit Risk Rating
Around 40 quantitative and qualitative factors of the company scorecard are applied in the PD Model to evaluate Scania's borrowers. With the LGD Models Scania executes the facility rating. In addition to the singular leasing contracts of the borrowers, the risk of their total accounts will also be evaluated.
The core element of the models regarding the Facility Rating is the trendline of the market value and the book value – from where the risk of the contract and accounts will be derived over time.
With its new Credit Rating System, Scania is ideally positioned in the market and will further develop their credit underwriting and portfolio management.
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