CREDIT SERVICES
Contract Administration Services
Importance of Credit Services
Because of ongoing turmoil in the general credit markets - and periodic turmoil in energy markets - credit has become a key area of concern for energy industry participants. APM maintains credit files on several hundred counterparties in handling the credit needs of its Owners and Clients. compressed.jpg)
APM Credit Services
The following specific services are some of the ways that APM’s Credit Department helps APM's Owners and Clients:
- Creating a customized Credit Policy
- Analyzing the financial viability of counterparties and maintaining credit files
- When necessary, assigning a credit rating to a counterparty based on APM’s proprietary scoring model
- Recommending and establishing credit limits for each counterparty
- Creating daily credit exposure reports (website accessible)
- Monitoring credit exposures
- Managing credit limit exceptions
- Negotiating credit thresholds
- Negotiating credit provisions in EEI contracts, ISDA agreements and NAESB agreements
- Negotiating netting agreements
- Creating and distributing credit “watch lists”
- Participating in ISO/RTO Credit Working Groups
CONTRACT ADMINISTRATION SERVICES
Importance of Contract Services
The strength of a business transaction is ultimately only as good as the strength of the underlying contract. APM’s Contract Administration Services are a key element in managing business risks and opportunities in competitive and volatile wholesale energy markets. APM manages over 1500 agreements for its Owners and Clients. compressed.jpg)
APM Contract Administration Services
The following specific activities are some of the ways that APM’s Contract Administration Department helps APM's Owners and Clients:
- Implementing contractual controls
- Identifying key contractual issues
- Ensuring contracts are in place to facilitate on-going trading activities
- Ensuring trades are executed with proper legal entity and acceptable products
- Ensuring existing contracts contain up-to-date credit provisions and adequate contractual provisions to minimize unreasonable business risks
- Generating reports, contractual products and provisions list, and custom reports as requested
- Monitoring trade executions within contracts
- Drafting damage claim notice letters
- Negotiating provisions in EEI contracts, ISDA agreements and NAESB agreements, including coordinating with APM’s Credit Department on credit provisions
Contact a Business Development Representative.