Professor Ed Altman discussed:

• In partnership with RiskMetrics Group, Professor Altman has created a new dimension in default risk estimation.
• Both best estimate ansd stressed one and five year estimates for default probabilities for both public and private firms are introduced.
• A unique 15 level rating system based on default probabilities is introduced.
• Results show positive comparisons compared to traditional rating systems including Dr. Altman's classic Z-Score approach.