Bridging the Gap Between Operational and Credit Risk: Fitch Ratings Integrated Into Algo OpVantage FIRST Database

Toronto, Canada - November 3, 2005 -

Algorithmics Incorporated announced today that it has chosen Fitch Ratings issuer ratings to include within its Algo OpVantage FIRST (Financial Institutions Risk Scenario Trends) database of case studies. The Algo OpVantage FIRST database has been mapped to selective ratings history, and tracked to start and end dates of an operational risk event, for the significant range of public companies covered by Fitch Ratings.

"The incorporation of Fitch Ratings into the Algo OpVantage FIRST database enables clients to complete deep analysis of the cost of a risk event, including the cost of borrowing capital, beyond pure loss amount," said Penny Cagan, managing director and head of research for Algo OpVantage. "It will also allow us over time to track how operational risk events impact a company's credit rating, which is an issue many of our clients are investigating as they analyze the relationship between credit and operational risk."

Dan Mudge, group managing director of Algo OpVantange commented on the inclusion of the Fitch Ratings: "Fitch Ratings provides significant coverage of the corporate markets and a deep repository of publicly available content that allows to us to add value for our client base in a way that is unmatched in the industry."

In addition to new content, new functionality has also been added to the database, which includes the ability to download events in XML format. These enhancements have been driven by feedback from Algo OpVantage's extensive user base of over 70 global financial institutions.

About the Algo OpVantage FIRST Database
The Algo OpVantage FIRST database, utilizing a unique real-life case study approach, is designed to assist institutions with their analysis of external operational risk events. The FIRST database is used as a qualitative tool, providing information on control breakdowns, event triggers, insight into why the losses occurred and lessons learned. FIRST contains case studies on approximately 5,500 operational risk loss events and is unrivalled in its depth of analysis and coverage of the industry.

About Algorithmics
Founded in 1989, Algorithmics is a recognized leader in enterprise risk management. Following its acquisition by the Fitch Group in January 2005, Algorithmics is the world's leading provider of enterprise risk management solutions and services that enable financial institutions to effectively understand and manage their financial risk. Algorithmics has over 200 clients, including more than 60 of the 100 largest financial institutions in the world. Algorithmics was recently recognized as the dominant enterprise risk solution provider in market, credit and operational risk in Risk Magazine's 2004 Technology Rankings. www.algorithmics.com

About Fitch Group
Fitch Group is the parent company of Fitch Ratings, a leading global rating agency committed to providing the world's credit markets with accurate, timely and prospective credit opinions. Fitch Ratings is dual-headquartered in New York and London, operating offices and joint ventures in more than 50 locations and covering entities in more than 80 countries. Fitch Group is a wholly owned subsidiary of Fimalac, S.A., an international business support services group listed and headquartered in Paris, France.

© 2005 ALGO, ALGORITHMICS, AI & design, MARK-TO-FUTURE, ALGO CAPITAL, ALGO COLLATERAL, ALGO CREDIT, ALGO MARKET, ALGO OPVANTAGE, ALGO RISK, and ALGO SUITE are trademarks of Algorithmics Trademarks LLC.

Press Contact

Heather Smith
Senior Communications Manager
Tel:  +44 (0)20 7392 5820
Mobile: +44 (0) 7515 974 223
Fax: +44 (0)20 7395 5701
email: Heather.Smith@algorithmics.com