Counterparty and credit risk assessment
Our client was approached by its trader to onboard a potential counterparty and allocate a credit line. The trader had provided background details and other evidence, but our client wished to support this with information from a trusted intermediary, without undermining the relationship.
They asked us to provide a report within 48 hours. Having covered the subject for over 10 years and based on a strong relationship with the counterparty’s management team, our analysts were able to access information not in the public domain. Our historical data showed that the subject had performed over multiple industry cycles, and we were able to rapidly secure up-to-the-minute performance data from our global sources. When combined with our rating, our insight gave the client the confidence to move ahead rapidly.
Infospectrum was commissioned by a banking client to assess the prospects for a Europe-based oil trading company which was embarking on a strategic change of direction. The company in question had traditionally sourced oil from Russia for distribution to clients in Europe, but had found itself increasingly squeezed out of its core markets due to the consolidation at the top of the Russian oil industry. The company’s latest accounts showed a loss-making position. The management’s response was to redirect their focus to Nigeria as the company’s main market for sourcing oil. Infospectrum was employed to assess the viability of the company’s new business plan.
In the course of the research, in-depth face-to-face interviews with the management of the company in question were carried out, as well as interviews with the company’s would-be counterparties, its historical trading partners, and the banks which had been nominated to provide the funding to allow the company to make its intended transition into the proposed new market sector.