Corporate Credit Analysis - Level 2
BPP Professional Education
Summary
- Tutor is available to students
Location & dates
9-10 Portland Place
West London
London
W1B1PR
United Kingdom
Overview
This intermediate level five-day course develops a greater understanding of more complex accounting and analysis areas and the operating dynamics of companies. We do not recommend that you attend Corporate Credit Analysis Level 2 immediately after having attended Corporate Credit Analysis Level 1. An interval of a few months between the two courses will give you valuable time to put into practice all the skills you learned at Level 1.
Venue may change up to 14-days before the course start date. Enquire for dates.
CPD
Description
Learning outcomes include obtaining a greater understanding of:
- Framework for Credit Analysis
- Components of credit analysis: assessment of management, analysis of a company's ability to repay and protection for the lender; collateral and covenants
- Risks to the Business
- Macro factors: political, economic, environmental and demographic
- Industry factors, e.g.: Growth trends, exposure to economic cycles, barriers to entry and regulation
- Corporate specific risks, e.g.: Product/geographic diversification, support levels, strength of major customers and suppliers
- Tools for Evaluating Corporate Strategy
- PEST Analysis
- Product mission matrix
- Market life cycle
- Product portfolio matrix
- Porter's model of competition
- SWOT analysis
- Analysis of the Financial Statements
- Accounting principles
- Overview of main differences between UK GAAP and IFRS
- Critical areas for review in the financial information
- Review of balance sheet and profit and loss account
- Off-balance sheet items
- Adjusting the accounts for analytical purposes
- Areas of flexibility in accounts, e.g.: Off-balance sheet financing, stock values, capitalisation of expenses and revenue recognition
- Understanding the Business
- Interpretation through ratio analysis
- Liquidity and the cash cycle
- Working investment as a measure of liquidity
- Identifying company dynamics
- The Dynamics of Cash Flow
- Construction and format of cash flow statements
- Understanding and interpretation of cash flows
- Calculation of free cash flow
- Debt capacity
- Forecasting
- Uses as a management tool
- Forecasting key assumptions
- Projection of the balance sheet and profit and loss account
- Forecasting cash flow
- Sensitivity analysis
- Corporate Failure
- Identifying warning signs
- Reasons for corporate failure
- The critical role of management
- Collateral Supporting the Debt
- Why take collateral?
- Priority of creditors' claims
- Insolvency law and how it affects lenders' rights
- Covenants to Protect the Lender
- Affirmative/negative covenants
- Financial covenants
- Structural subordination
Who is this course for?
This course will be of benefit to those with 1-2 years’ experience of credit analysis. A familiarity with financial statements is assumed. It is also suitable for investment analysts who wish to understand a company's financial standing from a credit perspective. Those who have attended our Corporate Credit Analysis Level 1 course will be well prepared for this course.
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This course is advertised on reed.co.uk by the Course Provider, whose terms and conditions apply. Purchases are made directly from the Course Provider, and as such, content and materials are supplied by the Course Provider directly. Reed is acting as agent and not reseller in relation to this course. Reed's only responsibility is to facilitate your payment for the course. It is your responsibility to review and agree to the Course Provider's terms and conditions and satisfy yourself as to the suitability of the course you intend to purchase. Reed will not have any responsibility for the content of the course and/or associated materials.