Structured credit products: approaches to risk reduction

Ushanov Alexander Y.

Complex-structured credit products, on the one hand, are characterized by increased risks due to the long-term nature of such transactions (over 3 years), on the other - a combination of tools that allow to limit the risk of investments. It is important to bring the structure of the credit transaction closer to the optimal in terms of credit risk for the Bank. Approaches to its reduction include, in particular, the analysis and accounting of the structure of companies participating in a credit or leasing transaction in the calculation of their rating. The advantages of using scoring systems of lessee assessment in comparison with the classical tools of credit risk assessment or rapid assessment are described. The article proposes, in order to reduce risks, the principles of calculating the rating of the transaction participants and pricing features of such structured credit products of the Bank as project financing and leasing, based on the criterion of the dominant source of repayment of the loan in the first case and the degree of concentration of the lessee in the portfolio of the lessor – in the second.

Keywords:structured products, project financing, leasing operations, borrower rating, group rating, credit scoring model.