Complete credit risk visibility and real-time counterparty analysis at the customer’s fingertips

DALLAS, TX, May 18, 2009 – Allegro, the leading provider of energy trading and risk management (ETRM) solutions has announced the release of Credit 8.1, a major upgrade within the Allegro 8 platform that addresses the industry’s need for more robust measurement and monitoring of credit risk.

Drastically fluctuating commodities prices are forcing companies to face much greater financial exposure which can be broken down into three main areas:

• Volatility - Commodity price volatility is translating into higher uncertainty in cost of goods. The result is significantly increased credit exposure due to price uncertainty of the commodity being transacted.
• The Credit Crisis - Increasingly tight credit markets greatly increasing the risk of counterparty transactions.
• Counterparty Management - Issues managing the growing amount of counterparty credit data and the currency of that data.

Existing methods of evaluating and managing credit risk between counterparties are lacking in these areas so that companies do not have the ability to measure current and future exposure, or build robust credit risk models to accurately rate counterparty credit scores in a timely manner.

Allegro has delivered comprehensive capabilities and first-to-market functionality with Credit 8.1, which is inherently integrated with both Allegro contract management and trade execution to reduce commodity transaction risk. It evaluates every aspect of a counterparty’s credit risk and liquidity to evaluate their current and potential future credit risk exposure. It also automates the process of acquiring comprehensive, current and accurate credit data to reduce the burdensome and error-prone task of getting credit data into the system.  This, all seamlessly integrated with the Allegro 8 platform.

“For an industry keenly aware of the risks inherent to commodity trading, even well-managed energy companies were caught unprepared by the epic price fluctuations of 2008 and subsequent credit market collapse,” said Michael W. Hinton, Allegro Chief Marketing Officer.  “Today, every energy-related transaction, from production to consumption, faces increased credit and liquidity risks.  Credit 8.1 provides the tools and transparency business managers need to meet this new challenge.”

Hinton noted that Credit 8.1 is clearly a “next generation” credit risk management solution that was developed in collaboration with several of Allegro’s largest clients, each representing different transaction models across the energy industry.  Their perspectives influenced the product from its initial concept, and each company successfully tested the solution in a real-world environment.

For more information about Allegro 8 and the Credit 8.1 risk management solution, visit www.allegrodev.com/credit.

About Allegro Development

Allegro is a global leader in energy trading & risk management solutions for power and gas utilities, refiners, producers, traders, and commodity consumers. With more than 27 years of deep industry expertise, Allegro’s enterprise platform drives profitability and efficiency across front, middle, and back offices, while managing the complex logistics associated with physical commodities.  Allegro provides customers with agile solutions to manage risk across natural gas, power, coal, crude oil, petroleum products, emissions, and other commodity markets, allowing decision makers to hedge and execute with confidence. Headquartered in Dallas, Texas, Allegro has offices in Calgary, Houston, London, Singapore, Sydney, and Zurich, along with a global network of partners.

For further information please contact Christie Lindstrom at media@allegrodev.com or +1.214.237.8117.