“CRS will enable banks to prove to regulators that their credit risk process for an internal ratings-based approach, under Basel II, is robust, consistent and objective,” said Treeve Coomber, senior director of quantitative analysis at Fitch Risk in London.
Although Fitch Risk is now officially marketing the product, Credit Suisse First Boston (CSFB) first developed CRS and is Fitch Risk CRS' first client. In July 2002, the bank sold the CRS intellectual property rights to Fitch Risk for an undisclosed sum. “The CSFB idea behind developing CRS was to promote consistency between its different credit departments around the globe,” said Coomber, previously a vice-president of credit risk management at CSFB in London. “CRS provides objectivity and rids banks of certain possible regional variations in rating practices.”