Algorithmics awarded patent for loan valuation technology - risk-neutral valuation technology for loans and other credit-related instruments

Toronto, London - September 24, 2009 -

Algorithmics, the world's leading provider of risk solutions, today announced that it has received a patent for technology that enables financial institutions to derive fair-market values for their loans and other credit related instruments using techniques designed to improve accuracy and transparency relative to current industry approaches. The technology will help banks structure, price, value, simulate and subsequently risk manage their complex loan portfolios in a manner consistent with current capital markets concepts.

Ben De Prisco, Senior Vice President of Research and Financial Engineering at Algorithmics said: "Algorithmics developed this technology to achieve better accuracy and transparency in loan valuation. This patented technology is innovative in that it applies capital market valuation concepts to the loan book for the purpose of obtaining market-consistent fair pricing for credit-related transactions. The patent not only facilitates the structuring and pricing of complex features and options offered in loans, but also allows financial institutions to risk manage their loan portfolios to understand the key drivers and sources of risks. Being able to assess the inherent riskiness of various transactions at the time of origination is critical in today's market environment."

Dr Michael Zerbs, President and COO, Algorithmics, added: "This technology is a significant step forward in the area of risk managing the majority of banks' assets. Combining this technology with our credit limits and credit administration tools ensures appropriate oversight at every step of the loan lifecycle. This patent demonstrates Algorithmics' continuing commitment to product innovation that is driven by our deep understanding of our clients' and the market's current needs."

More information about Algorithmics' recent patents for Generator Libraries and Dynamic Trading Strategies is here:

For further information please contact:
Heather Smith
Senior Communications Manager, Algorithmics (UK) Ltd
Direct line +44 (0) 20 7392 5820
Mobile +44 (0) 7515 974223
E-mail: heather.smith@algorithmics.com

Notes to Editors:

Algorithmics is the world's leading provider of risk solutions. Financial organizations from around the world use Algorithmics' software, analytics and advisory services to help them make risk-aware business decisions, maximize shareholder value, and meet regulatory requirements. Supported by a global team of risk experts based in all major financial centers, Algorithmics offers proven, award-winning solutions for market, credit and operational risk, as well as collateral and capital management. Algorithmics is a member of the Fitch Group. www.algorithmics.com

Fitch Group is the parent company of Fitch Ratings, a global ratings agency committed to providing the world's markets with independent, timely and prospective credit opinions. With 49 offices worldwide, Fitch Ratings' global expertise spans across capital markets in over 150 countries. Fitch Ratings is headquartered in New York and London.

The Fitch Group also includes Fitch Solutions, a distribution channel for Fitch Ratings products and a provider of data, analytics and related services; and Algorithmics, the world's leading provider of enterprise risk solutions.

The Fitch Group is a majority-owned subsidiary of Fimalac, S.A., headquartered in Paris, France. For additional information, please visit www.fitchratings.com  www.algorithmics.com  and www.fimalac.com  

© 2009 Algorithmics Software LLC. All rights reserved. ALGO, ALGORITHMICS, Ai & design, ALGORITHMICS & Ai & design, KNOW YOUR RISK, MARK-TO-FUTURE, RISKWATCH, ALGO ALM, ALGO COLLATERAL, ALGO CREDIT ADMINISTRATOR, ALGO CREDIT DATA SERVICES, ALGO CREDIT ECONOMIC CAPITAL, ALGO CREDIT EXPOSURE, ALGO CREDIT LIMITS, ALGO CREDIT REGULATORY CAPITAL, ALGO CREDITVANTAGE, ALGO ETREASURY CREDIT, ALGO FIRST, FIRST 500, ALGO MARKET ANALYTICS, ALGO OPDATA, ALGO OPVAR, ALGO RECONCILIATION, ALGO RISK, ALGO RISK SERVICE, and ALGO SUITE are trademarks of Algorithmics Trademarks LLC.