Credit Scoring Model

Providing credit scoring solutions for the unique needs of credit professionals.

Credit scoring in the energy industry is complicated by the various company types that transact in the wholesale energy markets. We utilize our unique experience and understanding of financial analysis as well as our knowledge of statistical methods to produce scoring models that are focused on the varied and changing environments found in energy trading. We offer both off-the-shelf modeling applications and client-specific solutions for counterparty credit scoring to fit every client's risk management and budgetary requirements. Our standard credit scoring model is a turnkey solution and provides individualized scorecards for several different types of counterparties. Our credit scoring model is designed to be user friendly and can be easily modified to meet your company's specific needs.

Benefits of Our Scoring Model

The RMG Scoring Model allows the user to calculate credit scores and implied credit ratings for multiple quarter or year-ends using financial data, ratings (when available) and qualitative indicators to determine a numeric credit score and an implied credit rating.

Credit Scoring by Company Type: Individual scorecards have been developed for each separate company type scored, including:

Financial institutions
Investor owned utilities
Merchant energy companies
Gas and oil producers
Natural gas pipelines
Wholesale energy traders
Power cooperatives
Municipal utilities
Corporate industrials

Implied Credit Ratings for Non-Rated Companies

Automated Financial Data: Financial data can be automatically downloaded from:

Investortools ECM database
Thomson Reuters
Bloomberg

Transparency of Calculations and Scoring Data: Our model is completely transparent. All calculations, financial data and ratios, weightings, scoring tables and mappings are visible to the user. Nothing is hidden and there is no "black box". The model is user friendly and can be easily modified by the user.

More information:

For an example of the RMG Scoring Model Results page.

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For more information on the benefits and various attributes of the RMG Scoring Model.

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We have a strategic partnership with Investortools, which has incorporated the RMG Scoring model into their ECM database. For more information on the benefits of ECM, please visit Investortools website.