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Credit Analysis

City Training UK!

Summary

Price
£5,100 inc VAT
Study method
Onsite
Duration
2 days
Qualification
No formal qualification
Certificates
  • Certificate of completion - Free
Additional info
  • Tutor is available to students

Overview

At the end of the training, through a mix of lectures and interactive case studies, participants will be able to perform a detailed credit analysis, including analysing market and environment, computing key financial ratios, interpreting cash flows and analysing financing needs.

Certificates

Certificate of completion

Digital certificate - Included

Description

COURSE CONTENT

Session 1

Introduction and Overview: What is Credit?

  • Risks defined
  • What is the role of the credit analyst?
  • The Principles of good lending
  • The key analysis tools
  • Sources of information

Session 2

A Common Approach to Analysing Credit

  • What are the objectives and general characteristics of an effective credit risk rating system
  • The building blocks
  • The structured framework of credit analysis
  • Assessing performance
  • Understanding and evaluating Business Risk:
    • Macro (sovereign and country)
    • Micro (industry)
    • Management
  • Industry life-cycle

Session 3

Financial Needs and the Business Operating Cycle

  • Financial risk
  • Banks and banking:
    • Types of banks
    • Types of loans
  • Business needs
  • Corporate operating cycle and financing

Session 4

A Focus on the Financial Statements

  • Principles of Accounting
  • Understanding the financial statements:
    • Type of information
    • Key issues
    • Consolidation rules

Session 5

Financial Ratio Analysis

  • Types of financial ratios:
    • Business efficiency
    • Profitability
    • Financial
    • DuPont analysis
    • Other ratios
  • Liquidity vs. Solvency
  • Seasonality and management of working capital and the implications on financing
  • Interpretation and application of results
    • Limitations of ratio analysis
  • Insights

Session 6

Creative Accounting

  • Revenue recognition
  • Cost recognition
  • Warning signs

Session 7

Corporate Cash Flow Analysis

  • Statement of Cash Flow (construction and analysis)
    • Key issues to consider
    • The cash cycle
  • The Statement of Cash Flow:
    • Methods of Cash Flow presentation and construction
    • Traditional (CFO, CFI, CFF)
    • Manual (Direct and Indirect)
    • Rating agency derived (FCF)
  • Indentifying the 7 drivers of cash flow
  • Cash Flow Available for Debt Service (“CADS”)
    • Debt Capacity
  • EBITDA

Session 8

Financial Projections

  • Models (what we really want to know is what happens next)

o Projection methodology

  • Short and Medium/Long-term

o Projections

o Judgements

  • Management influence
  • Projection problems

Session 9

Structural Risk Analysis

  • Myths, realities, opportunities and threats
  • The optimal debt structure
  • Factors influencing the choice of debt or equity
  • Structuring principles and issues:
  • Structuring a transaction
  • Facility type
    • Seniority
    • Security
    • Covenants
      • Affirmative
      • Negative
    • Structural mitigants
    • Control provisions
      • What does the Lender want?
      • What does the Borrower want?

Session 10

Credit Risk Lending Policy Guidelines

  • Credit Analysis format
    • How to put together a credit analysis – methods of presentation
    • Participants to discuss and come to a conclusion about the best method of presenting information in a standardised format throughout the bank
    • A study of the bank’s own guidelines will take place enabling participants to reconcile what they have learnt to the banks own practices (this may involve a senior in-house speaker)

Who is this course for?

  • Credit analysts in Corporate Banking
  • Credit analysts in SME retail banking
  • Credit managers in corporations
  • Factoring professionals
  • Debt Capital Markets in Investment Banks
  • Fixed Income Equity Research
  • Fixed Income Investment Management
  • All other interested Finance professionals.

Questions and answers

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Legal information

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.

FAQs

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