- MSCI (MSCI, Financial) and Moody's (MCO) are launching an independent risk assessment solution for private credit investments.
- The initiative combines MSCI's extensive private capital database with Moody's EDF-X credit risk modeling.
- This solution aims to enhance transparency and help investors make informed decisions in the private credit market.
MSCI Inc. (MSCI) and Moody’s Corporation (MCO) have formed a strategic partnership to develop a pioneering independent risk assessment solution for private credit investments. This collaboration seeks to address a significant gap in the evolving private credit market by providing scalable and transparent risk assessments.
The joint solution leverages MSCI's comprehensive database, which includes data on more than 2,800 private credit funds and over 14,000 underlying companies. This extensive data is integrated with Moody’s EDF-X credit risk modeling solutions, which enable detailed risk insights and early warning signals to gauge financial strength globally.
The new offering aims to establish consistent standards for private credit risk assessment, allowing investors to better assess, compare, and communicate the risks associated with their investments. It is intended to be a complementary service, distinct from the credit rating services provided by Moody’s Ratings.
Rob Fauber, President and CEO of Moody’s, emphasized the importance of trusted independent assessments, stating, "Our partnership with MSCI will play a critical role in providing these insights, helping market participants make informed decisions." Similarly, Henry A. Fernandez, Chairman and CEO of MSCI, highlighted the need for increased transparency and independent risk assessment as the private credit market continues to grow.
