Delinquent Roll Rate Computation

During the Current Expected Credit Loss Run, the system computes the Roll Rate of an account by projecting the given transition matrices, computed or created through UI - as selected by you, into the future until the maturity of an account using the matrix multiplication process.

The probability of an account moving into the default rating on maturity from the current rating as of the given MIS Date is considered as the Default Roll Rate.

You can either execute the Historical Transition Matrix Run or use the Transition Matrix UI to generate a Transition Matrix. For more information about generating Transition Matrix through UI, see the Transition Matrix Definitions section.