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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:  The model is currently set up to automatically download financial data from subscribers of the Investortools ECM database.  Other financial database products can also be easily linked up with the model since it is an Excel-based product. 

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.

Excel-Based Product:  ,Microsoft Excel product is something we are all familiar with and work with everyday.  Since the RMG Scoring Model is Excel-based, it is within a platform that is easy to understand and use. 

More information:

For an example of the RMG Scoring Model Results page.

EXAMPLE


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

BROCHURE

 

 

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.