S&P and Oliver Wyman launch climate-linked credit risk model suite

S&P Global Market Intelligence and Oliver Wyman have joined forces to create a model suite providing credit risk assessments of companies under a range of climate scenarios.

It is designed to help financial institutions and corporates understand how a transition to a low-carbon economy will impact the creditworthiness of their counterparties. It will combine S&P Global Market Intelligence’s advanced Credit Analytics risk models and data with Oliver Wyman’s industry-leading climate scenario and stress testing expertise.

“Oliver Wyman’s deep expertise in assessing climate risk scenarios and overall risk management complements S&P Global Market Intelligence’s comprehensive differentiated data and credit risk analytics offerings,” says Whit McGraw, managing director and global head of Credit Risk Solutions at S&P Global Market Intelligence. “These intuitive models will provide an in-depth view of the drivers that will impact credit risk, giving our clients a new layer of climate-related assessment tools that help them form a holistic approach to assess credit risk.”

“S&P Global has a wealth of strategic assets that provide essential intelligence to key decision makers. We are excited to combine their unique databases and analytics with our counterparty level, driver-based methodologies,” says Ilya Khaykin, partner and head of Climate Risk for the Americas at Oliver Wyman.

The multi-sector climate-linked credit analytics models will become available on a rolling basis throughout 2020 and 2021.