RiskMetrics expands CreditGrades to include Japan

RiskMetrics Group, the New York-based software company, has expanded its CreditGrade risk measurement system in Asia to include data on Japanese firms.

Originally released in May 2002, with the backing of Deutsche Bank, Goldman Sachs and JP Morgan Chase, CreditGrade is an equity-based model that assesses the credit quality of publicly traded companies based on equity price history and balance sheet information.

RiskMetrics Group plans to expand its CreditGrade coverage with further Asian data planned for the third quarter of this year, and extensions to the North American and European coverage by the end of the year.

“We expect that the release of CreditGrades in Japan will have a similar impact on market transparency as our initial release and help assure the continued growth of Japanese credit markets,” said Christopher Finger, head of credit risk products at RiskMetrics Group.

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