Case Study: a leading Latin American multilateral development bank strengthens project finance credit risk assessment with S&P Global's ESG Enhanced Project Finance Scorecard

Benefits of Leveraging a Comprehensive Project Finance Credit Assessment Scorecard

S&P Global worked with a leading large Multilateral Latin American Development Bank, whose credit risk teams in five major countries needed a better way to estimate Probability of Default for project finance transactions. The bank lacked enough internal default data to build robust statistical models, and wanted a consistent credit scoring methodology that could also capture the impact of ESG factors on creditworthiness.

S&P Global Market Intelligence implemented its ESG Enhanced Project Finance Scorecard, an Excel-based model with a 20-point rating scale, PD estimation, scenario and stress testing, ESG factor analysis, and supporting documentation and training. The solution helped the bank formalize its organization-wide credit scoring approach and assess the credit impact of ESG factors, although the case study does not provide specific quantitative results or measured impact.