AFP in partnership Thomson Reuters is to provide access to selected companies to evaluate their creditworthiness and to identify emerging trends in counterparty credit risk. AFP members can now access data on selected companies from Thomson Reuters StarMine Quantitative Models, including a:

• SmartRatios Credit Risk Model which provides a view of a company's credit condition and financial health by analyzing a wide array of accounting ratios that are predictive of credit risk. This model groups various accounting ratios, along with industry-specific metrics, into five components: profitability, liquidity, leverage, coverage and growth, which are combined in a logistic regression framework.
• Structural Credit Risk Model which evaluates the equity market's view of credit risk via StarMine's proprietary extension of the structural default prediction framework introduced by Robert Merton that models a company's equity as a call option on its assets. It improves upon three primary components of the Merton model framework based on quantitative analysis of historical data: leverage, asset drift and volatility.

The new service is only available to AFP members.