SCOPE CREDIT SCORECARD
CRE transactions are unique
There are various aspects that make CRE transactions challenging to analyse consistently.
Capturing expected loss accurately
Addressing both default and recovery analysis consistently, efficiently and without double counting risks can be a challenge in separate default and recovery tools.
Tailored Transactions
The bespoke nature of this asset class means you have to analyse many credit risk factors, relating to: Tenants, Collateral, Macro and market information, The CRE loan(s) itself
Difficult to scale and maintain
Lack of multi-user access to the tool through an easy-to-use interface reduces scalability of the business. Demanding to support, update & maintain a tool over time.
OUR SOLUTION
Scope Credit Scorecard for Commercial Real Estate
Proven methodology. The analytical tool is generally consistent with Scope Ratings’ CRE loan methodology. Uses a Monte Carlo simulation engine, with 200+ input factors capturing the specifics of each transaction. A transparent tool with comprehensive result based on detailed cashflow analysis. On the ScopeOne platform with multi-user access, supports workflow and auditability
The documentation includes user guidance on how to apply the CRE Scorecard, and Technical information describing how the CRE Scorecard was developed and tested Application training workshops are provided for analysts/managers to learn how to apply the CRE Scorecard independently. This is included at the outset and available on an ongoing basis for new staff or as a refresher training
Ongoing Support: Clients have access to Scope’s risk solutions team for questions about the application of the CRE Scorecard. Ongoing Update & Maintenance service Ensuring that the CRE Scorecard continues to be generally consistent with the CRE loan methodology
OUR SOLUTION
The CRE Scorecard’s analytical process
CRE SCORECARD
Key benefits
Offers an analytically robust tool
The CRE Scorecard is generally consistent with Scope Ratings’ CRE loan methodology which takes an expected loss approach, combining term and refinancing default and recovery analysis within one tool.
Captures bespoke nature of CRE
A granular and flexible quantitative tool with 200+ data points to capture the bespoke nature of CRE transactions. You can define almost any priority of payments among debt instruments.
Enables business growth
The CRE Scorecard is accessible through ScopeOne for all users within your organisation. Users can also access Scope Ratings’ credit ratings and research related to CRE and other asset classes on ScopeOne.
CRE SCORECARD
Next steps
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