Alchemy RatingOne combines a fully configurable obligor risk rating engine with Basel II compliant entity and facility PD estimates. Our scoring engine allows single and multifactor analysis, allowing risk managers to fine tune the accuracy of the scoring model based on actual experience, over a variable sample window. In addition, the built in feedback loop makes it possible to gauge the predictive quality of each scoring element in isolation, making the scoring model less vulnerable to cyclical factors.

The ability to customize the scoring engine enables pooling of relationships and provides flexibility to work with smaller data sets. Probability of default is calculated using both Basel II and internal default definitions over a variable sample window.

Change in customer behavior may be captured using a coarse grid approach, or supplementing the grades with additional indicators, making the event tracking process as sensitive as required.

Finally the ability to define score ranges for probability of default calculation allows the user to capture any outliers in the score distribution, instead of having to group PDs using a generic scale.

Key Features:

	A Basel II compliant Obligor Risk Rating (ORR) and Facility Risk Rating (FRR) engine
	Entity and facility probability of default calculations
	Multifactor scoring engine
	Multiple scoring parameter configurations
	Basel II and internal default event definitions
	Payment behavior tracking and principal/markup overdue analysis
	Out of time and out of sample statistical testing for calibration and discrimination

Additional features include:

	Attribute specific probability of default estimates
	Out of time and out of sample statistical testing for calibration and discrimination
	Foundation IRB capital charge computation
	Loan pricing module using return on asset (ROA) and risk adjusted return on capital (RAROC) analytics.

Alchemy RatingOne - Functionality Table

Obligor Facility Credit Event Probability Validity Basel II Customer Attributes Collateral Basel II Default Entity & Facility Out of time Foundation IRB Capital Charge Financial & Ratios Credit Application Internal Defination Attribute Specific Out of sample Loan Pricing Analytics External Rating Repayment Behavior Funded vs. Non Funded Feedback Loop Calibration Capital Allocation