Reorg, the leading global provider of credit data, analytics and intelligence, announced that for the first time, the proprietary Reorg Restructuring Risk Index (or RRRI), will become available to Reorg subscribers exclusively through Credit Cloud by Reorg. Subscribers will be able to search and screen U.S. publicly traded companies by their probability of entering a future restructuring process.
Determining Restructuring Risk
The RRRI leverages Machine Learning (ML) and Natural Language Processing (NLP) to classify and extract data from publicly available documents and press releases such as annual reports, earnings updates, M&A activity and staff changes. The data science model sorts these numerous documents, identifies patterns and provides a scoring mechanism to predict the likelihood of US publicly traded companies filing for bankruptcy. The model is trained off of Reorg’s unique historical database of in- and out-of-court restructuring events and all public disclosures leading up to those restructuring events.
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The RRRI provides a score that reflects the probability of any US public company filing for bankruptcy, with scores ranging from 0 to 100; 0 meaning least likely and 100 meaning a chapter 11 filing is imminent.
Highlights of the RRRI include:
- Data points on more than 2,000 public companies, including a library of past and ongoing updates to RRRI values.
- Continuous updates of RRRI via analysis of hundreds of company financial statements and documents including SEC filings (8-K, 10-K, 10-Q, etc.), press releases and transcripts over a rolling look-back period.
- Qualitative industry expertise from Reorg internal experts in the restructuring field paired with cutting-edge data science technology.
Launched in April, Credit Cloud by Reorg is a self-service data and analytics platform providing differentiated data and workflow tools to professionals in the restructuring and leveraged finance markets. Reorg’s Restructuring Risk Index is a proprietary Reorg score that can only be accessed in Credit Cloud. With the RRRI, Credit Cloud now provides a powerful signal, based on volumes of unstructured data and specialized expertise, as to what the market can expect from its public companies.
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The addition of the RRRI into the Credit Cloud offering continues to build upon Reorg’s existing solutions in the leveraged finance, high-yield and distressed debt markets, which together offer a comprehensive platform providing one-stop access for market participants.
Reorg’s product range includes data, analysis and intelligence on high-yield and distressed credits across North America and Latin America, Asia, Europe, the Middle East and Africa. Reorg also offers specialist Covenants analyses, First Day intelligence and data, and M&A analysis.
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