Scope Credit Scorecard

Scope Credit Scorecard for Commercial Real Estate

A robust credit assessment tool that captures the bespoke nature of commercial real estate transactions

SCOPE CREDIT SCORECARD

CRE transactions are unique

There are various aspects that make CRE transactions challenging to analyse consistently.

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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.

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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

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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

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Analytical tool

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

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Documentation & Application training

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

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Support, update & maintenance

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

Flow analytical process credit scorecard

CRE SCORECARD

Key benefits

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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.

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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.

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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

ESG impact review

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