Corporate Credit Analysis
Using a Credit Route Map as a structure, as well as one or two core case study companies, this highly interactive 2 Day training programme will provide participants with a framework for understanding the key issues in corporate credit analysis.
Participants do not need to be currently working in corporate credit analysis but an existing understanding of the core principles of accounting and the structure of financial statements is needed to gain maximum benefit from the training.
- The credit route map - an overview of the corporate credit analysis process and the influences on a credit rating.
- The importance of qualitative and market indicators vs. quantitative financial analysis
The risk analysis framework - qualitative risk assessment
- Understanding macroeconomic cycles
- Industry risk
- Assessing management risk and Corporate Governance issues
The risk analysis framework - quantitative risk assessment – financial statements
- The main financial statements and their structure
- Accounting principles
- Accounting Standards – development of IAS and convergence of accounting standards
Accounting vs. cash flow analysis
- Limitations of and risks in relying on financial statements – Creative Accounting issues
- Cash flow statements – differing formats and approaches to analysis
The risk analysis framework - Quantitative Analysis – Ratios
Which ratios are used and why – the main ratios used for corporate credit assessment
Ratios used by equity investors vs. accounting based ratios
Some of the financial ratios used by Rating Agencies, and their approach to analysing corporate credit risk
Risk mitigation techniques for corporate credit exposures
Financial covenants – what they are and how they are used?
Rating Triggers and their significance in terms of credit risk
Guarantees and credit enhancement
Collateral Support Agreements
Risk and return – pricing of credit risk
- Principles of risk and return
- Key elements of RAROC
Credit portfolio models
- How credit risk is measured – overview of the principles of a credit risk management model; the concepts of Expected Default Frequencies, Loss Given Default and Recovery Rates
- Implications of the credit crisis – regulators’ proposals for enhancing the Basle Capital Adequacy rules
As every course we run is tailored to meet the specific needs of each client, we can only provide an estimate after fully understanding your specific requirements. Please complete the form below of call +44 (0) 208 894 4977 to discuss how Taylor Associates can help you.