It is now over 13 years since the onset of the global credit crisis. The world is dealing with the impact of COVID-19 which is putting many companies’ finances under severe strain. There are heightened political risks. Technology is facilitating rapid and disruptive changes in many industry sectors. The way people live, travel and work is changing Issues such as global warming are profoundly impacting businesses.
The implications of the above and other changes in the business environment and social changes is that past experience may be far less reliable as an indicator of potential credit defaults and losses. So, are traditional methods of corporate credit analysis still relevant? Or is there a need to change the corporate credit analysis methodology, or at least use additional measures of risk assessment?
