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Ron Borcky, global director of credit at International Paper Co. (IP), recalls his surprise back in 2001 when companies that carried investment-grade credit ratings began to “pretty much collapse.” If you couldn’t depend on the credit ratings agencies to spot trouble, what was the potential for hidden problems at other public companies? Borcky decided that he needed to supplement the various sources of credit data that IP already used to track its tens of thousands of customers and their ability to pay with information from CreditSights Ltd., including its BondScore, a credit risk measure that incorporates the price of a company’s equity and the volatility with which it trades. “The more information I can get the better, particularly information that’s plugged into the equity market,” Borcky says. And that’s exactly what IP is able to get from BondScore, where the risk model is based on timely market information.

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