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Credit Analysis

A half-day webinar by experience trainer


City Training UK

Summary

Price
£600 inc VAT
Or £50.00/mo. for 12 months...
Study method
Online with live classes
Duration
3 hours, Part-time
Qualification
No formal qualification
Additional info
  • Tutor is available to students
  • Certificate of completion available and is included in the price

1 student purchased this course

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Overview

This training provides a basic understanding of the credit analysis framework, including key corporate credit ratios, structural risk analysis and lending policies.

Resources

Description

Session 1

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

Financing Needs and Business Operating Cycle

  • Financial risk
  • Banks and banking:
    • Types of banks
    • Types of loans
  • Business needs
  • Working capital cycle
  • Medium to long-term financing

Session 4

A Focus on Financial Statements

  • Principles of Accounting
  • Understanding the financial statements:
    • P&L, balance sheet and cash flow statements
    • Type of information
    • Key issues
    • Consolidation rules

Session 5

Creative Accounting

  • Revenue recognition
  • Cost recognition
  • Warning signs

Session 6

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 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)
  • Identifying the 7 drivers of cash flow
  • Cash Flow Available for Debt Service (“CADS”)
    • Debt Capacity
  • EBITDA

Session 8

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
    • Structural mitigants
    • Control provisions

Session 9

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

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