Bond Rating Analytics
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DUE DILIGENCE For your Municipal Portfolio
S&B offers a suite of analytical rating reports to assist your bank in determining the investment-grade status of its municipal securities. There are two categories of ratings utilizing two separate models – Priority Municipal Bond Ratings and Standard Municipal Bond Ratings. Priority ratings make use of automated financial data and a model. Standard S&B ratings involve a manual spread of data and a model that incorporates more data points. Each report represents a higher level of due diligence and engagement with S&B. Click on the report title for more information, report samples, and pricing.Each of the following reports can be used for either pre-purchase or post-purchase due diligence.
Click on each report to learn more:
|PRIORITY DUE DILIGENCE REPORT||$200|
S&B utilizes numerous sources to generate ratings on a variety of corporate securities. The S&B Corporate Rating can be used for both pre- and post-purchase analysis.
|CORPORATE BOND RATING REPORT||$275|
S&B provides clients with an ongoing rating service on a monthly, quarterly, or annual basis through its Portfolio Surveillance offering. Click the following link for more information on how to benefit from this ratings relationship. Top 10 Reasons to Use S&B Municipal Bond Ratings.
|STANDARD PORTFOLIO SURVEILLANCE REPORT||Call for Pricing|
MANAGING RISK with Ongoing S&B Ratings:
Regulatory guidance has indicated that the level of Due Diligence required on a security should be performed according to the level of risk of that security within the portfolio. The following are factors that determine higher risk and greater need for due diligence, which should be integrated in each bank’s investment policy for effective use of S&B Ratings:
Concentration risk: The amount of security owned relative to the size of the portfolio exceeds risk parameters established by the institution.
Geographic risk: The amount of securities owned within a specific geographic region exceeds the risk parameters established by the institution.
Non-Rated Bonds: While the security might have initially held an agency rating, at this time, the agency rating has been withdrawn, leaving the security without a rating. Additionally, the security might have had an enhancement, such as bond insurance, that was since removed likely due to closure of the insurance agency.
Split Rating: The security received a rating from two separate rating agencies that are notably out of agreement.
Non-Recurring Risk: Risk associated with non-recurring and often unpredictable phenomenon, such as extreme weather events and civil unrest.