Credit Risk Analysis – Corporates

This two-day course will teach participants the basics of financial analysis for large corporates. An introductory session will discuss the implications of the credit cycle and defaults associated with the cycle. Participants will evaluate the various aspects of fundamental credit analysis and incorporate quantitative and qualitative factors in developing a sound credit rationale.

Course Objectives

By the end of the course, participants will be able to:

• Explain how the Porter Model and SWOT analysis can assist the analyst
  • Industry and competitive analysis
  • Evaluation of management

• Discuss who uses credit analysis and why
• Define the types of credit risk including:
  • Lending, issuer, country, daylight, settlement
• Explain the importance of understanding the credit cycle
• Examine the different types of funding requirements a company has
• Examine financial forecasting techniques
  • Balance sheet, income statement, cash flow statement
  • Multi-year forecasts
  • Sensitivity analysis
• Recognize the different debt structures in loans and bonds
  • Senior debt, subordinated debt
  • Structural subordination
• Discuss the role of covenants and collateral

Suggested Prerequisites: Financial Statement Analysis or equivalent knowledge
Program Level: Intermediate
Advance Preparation: None
Computers and Financial Calculators: Calculators
Recommended CPE Credits: 14
Duration: 2 days