Q_&_A_EXIM17Q0070_-_Integrated_Industry_Database.pdf

Question & Answers Solicitation

EXIM17Q0070

Integrated Industry Database

17 July 2017

1. Question:

Does the Combined Synopsis/Solicitation under solicitation number EXIM17Q0070 contain requirements similar to a current contract or, is this a new requirement for the government?

Answer: This is a new requirement and no similar contract currently exists for EXIM Bank.

2. Question:

What countries are in scope for the emerging markets?

Answer: Technically all countries are in scope, except for the United States and those countries EXIM Bank is limited from doing business for economic and/or political reasons. The website reflecting the countries where EXIM Bank is open for business is provided below. EXIM Bank’s primary focus has been in providing support for transactions in emerging markets.

http://www.exim.gov/tools-for-exporters/country-limitation-schedule

3. Question:

Does EXIM Bank have a list of the industries that are in scope?

Answer: Technically all industries are in scope. However, our largest industry exposures include: aircraft, oil and gas, mining, power generation (including renewable energy), agribusiness, medical equipment, construction equipment, other various manufacturers, wholesalers.

4. Question:

What is the typical size of the companies?

Answer: The industry database would be used to benchmark a range of companies from SMEs (<$25 million in sales) to large publicly-traded corporates with market-ratings.

5. Question:

Are the companies a combination of public and private? Please provide a breakdown.

Answer: An exact breakdown is not available, but the majority will be private (non-publicly traded) companies.

6. Question:

Please provide the ratios and the definitions of the ratios that are of interest

Answer: The industry database should be linked to financial ratios commonly used in credit analysis (e.g. profit margins, growth rates, working capital and asset turnover ratios, liquidity ratios, leverage and coverage ratios, etc.). The financial http://www.exim.gov/tools-for-exporters/country-limitation-schedule ratios should be considered indicative of probability of default and correlated with metrics included within the industry database. Although EXIM Bank utilizes certain financial ratios in its existing risk rating approach, EXIM Bank is open to incorporating new financial ratios within its risk rating model, so long as these ratios have been validated as being indicative of probability of default.

7. Question:

What is the expectation for validation of a vendor’s solution?

Answer: Validation of how financial ratios and other metrics within an industry database are correlated with indicative risk ratings must be documented and provided as part of the integrated industry database.

8. Question:

Should vendors provide suggestions for validating?

Answer: No, the intent here is not to validate EXIM Bank’s existing risk rating model, but to enhance the model with a pre-validated industry database, correlated with indicative risk ratings.