The methodology behind CreditSights Risk Products is transparent, clear, and logical. Fundamental and equity market information drives all our models, enforcing objectivity. A one-year forward probability of default (Credit Risk Estimate or CRE) and a medium-term CreditSights Rating (CSR) are the cornerstone Risk Products outputs.
A CRE is a one-year forward estimate of a company's probability of default, and is translated into five Credit Risk Levels for easy interpretation.
A CSR is a medium-term measure of a company's credit risk, based on a cumulative five-year PD for non-financial firms and fit to agency ratings for financial companies.
The blend between both types of data varies across models and time frames. Please see the white papers for more details.