Standard & Poor's, the international rating agency, is promoting a new credit risk information system developed for banks selling portfolios of loans made to smaller companies.

The rating agency believes banks' issuance of collateralised loan obligations (CLOs) linked to small and medium-size enterprises (SMEs) is set to increase, particularly Spain, where a government-sponsored loan programme is expected to fuel the pipeline of deals. The rating agency also sees potential in Italy, where loans to smaller companies are among the largest assets on banks' balance sheets.