Early Detection of Credit Risk in the News

Moody’s Analytics NewsEdge Credit is a unique application that captures adverse credit signals from news articles for the companies you care about. It is powered by news curated from premium news and online sources worldwide by the NewsEdge team of content experts. Backed by extensive research and state-of-the-art artificial intelligence techniques, NewsEdge Credit applies credit sentiment score models to isolate early risk indicators often found in the news before they are revealed in traditional data sources.

News Coverage Offers Early Insights

News breaks around the clock and around the globe in a constant stream of content vying for your attention on your devices and desktop. This makes it hard to keep track of what is relevant, yet news can provide insights on company related credit quality months before actual major credit events occur. That’s why NewsEdge Credit is a great complement to your risk management strategies. News reporting or even speculation on bankruptcy, financial default, profit adjustments and compliance issues can impact credit risk helping businesses to make informed decisions for the long term.

Access to relevant, quality news is key to early detection. But few businesses have the resources to parse the volume of news they receive effectively, making it challenging and costly to monetize their news assets. Our NewsEdge solutions are backed by decades of business-relevant news curation and processing expertise, so you can manage the news inflows, and be confident that the sources in NewsEdge Credit are reputable, authoritative, and timely. This is the benefit of using a NewsEdge news solution.

AI Models Deliver Guidance You Can Count On

Our data analysts have been collecting and studying credit events to develop and train machine-learning algorithms to interpret negative credit events in the news for years now. Using several deep-learning and text-analytics techniques, our models capture context and determine the sentiment of the credit event as credit adverse. We model five credit risk events including bankruptcy or insolvency, default or missed payments, credit rating downgrades, profit warnings, and compliance issues. For each credit risk category, we instantly assess credit events in the news and corresponding sentiment, and apply a proprietary entity scoring formula known as the Moody’s Analytics Credit Sentiment Score™, or CSS.

The CSS, ranged between 0 and 100, signals the credit health of a company on a daily basis. Pulling from over 17,000 of the world’s most trusted news sources, the score weights any adverse credit news each day but also factors in recent history providing a directional view into how a company’s credit risk is trending to help inform decision making.

Benefit of NewsEdge Credit

NewsEdge Credit is an application that combines trusted business-relevant news stories with credit risk expertise to provide a straightforward look at adverse credit signals in your company portfolio. The application features:

Company Portfolio Builder 

The personalized company portfolio builder that lets you keep track of the companies that matter most to you.

Credit Sentiment Score

Moodys’ Analytics CSS provides instant guidance on the daily credit health of a company while trend lines provide a snapshot into a company’s recent history highlighting areas of concern.

Heat Map Indicators 

The intuitive heat map instantly alerts you to the news events requiring your attention.

Historical Sentiment Analysis

Access historical sentiment analysis charts dating back to 2018 for easy understanding of credit trends.

Full News Coverage

Get access to the corresponding news articles impacting the credit score either for immediate review or saved to folders for evaluation at a more convenient time.

With NewsEdge Credit, you can easily stay on top of the overall credit health of your company portfolio. We take care of curating the industry’s most respected news sources, identifying all credit-relevant news, and using our expert data analytics to quickly and efficiently provide early warning indicators for the credit events you need to know for better decision making.

Moody’s Analytics NewsEdge Credit is a web application that offers scoring, news and charting components that can be easily integrated into other applications or consumed via an API, for when you need the power of news-based credit risks signals in your own workflows and proprietary applications. These integrations are available through a number of Moody’s Analytics solutions including CreditEdge™ and Credit Catalyst.