S&P acquires Default Filter from IQ Financial

Standard & Poor’s (S&P) has acquired the Default Filter credit risk management assets from risk management software company IQ Financial Systems.

Default Filter is a tool for modelling credit risk at middle market and large corporates and banks, allowing users to choose and test their own assumptions and simulations for pricing, credit risk management and portfolio risk reporting.

“This acquisition boosts Standard & Poor’s Risk Solutions’ capability to provide our clients with modelling services for middle market exposures around the world,” said Roy Taub, New York-based executive managing director of S&P’s global risk solutions unit.

The system is particularly effective in Asia, where a lack of historical data has hampered the development of internal systems within banks, added Melbourne-based Ken McLay, managing director and regional head of S&P Risk Solutions. “A lack of quality data has hindered the development of robust internal ratings-based methodologies, and banks are increasingly seeking external tools to assist in the assessment of credit risk,” he said.

As part of the acquisition, Singapore-based Corinne Neale, managing director at IQ Financial, joins S&P as a managing director.