Patent ID: 7720753
Filing Date: 2010-05-18
Classification: G06Q

Abstract:
1. One or more computer readable media storing computer executable instructions that, when executed by at least one processor, cause the at least one processor to perform a method comprising: determining an internal company credit rating for each of a plurality of securities; inputting the internal company credit rating for each of the plurality of securities and an external credit research agency original credit rating for each of the securities in a ratings history database; receiving data representative of a change of the external credit research agency original credit rating for at least one security of the plurality of securities to a new credit rating; responsive to the change, receiving data representative of a current price of the at least one security and a benchmark price of the at least one security, the benchmark price being a price of the at least one security at a designated period before the change; and calculating at least one metric to determine the number of times the internal company credit ratings for each of the plurality of securities and a true positive or true negative outcome, the calculating based upon the internal company credit rating for the at least one security, the external credit research agency original credit rating for the at least one security, the external credit research agency new credit rating for the at least one security, the current price of the at least one security, and the benchmark price of the at least one security, wherein calculating at least one metric includes: determining a count of the plurality of securities with a ratings change during a measurement period; determining a count for spread movements of the count of the plurality of securities with a ratings change during the measurement period in a right direction; and determining a rating effectiveness as the count for spread movements in the right direction divided by the count of plurality of securities with a ratings change during the measurement period.