Fitch Risk, the risk advisory firm affiliated to Fitch Ratings, has launched a new internal ratings validation service designed to help banks and firms validate and enhance their internal credit ratings practices ahead of Basel II.

Increasing numbers of banks are seeking external validation of their ratings processes and methodologies to meet with the changing regulatory standards. Although the controversial Basel II Accord is not expected to take effect until late 2006 at the earliest, several vendors have already begun to prepare combined technological and consultancy offerings to help banks comply with prescribed changes in the way credit risk is measured.