Ian McIsaac

Financial Training and Consultancy
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

Corporate Credit Analysis

Aims:

This programme is designed for banking and credit professionals seeking to advance their analytical skills. The course uses a structured approach to evaluate a company's creditworthiness, sharpen credit judgement and anticipate a deterioration in credit quality. Case studies and exercises are widely used to ensure that the training is practical and interactive.

Course Dates
Course Programme:


Introduction
  • Course objectives
  • Structured approach for credit analysis
  • Possibility of default, loss given default and expected loss
  • Credit cycles: a historical perspective
The Qualitative Aspects
  • Sovereign risk issues
  • Industry dynamics and regulatory issues
  • Company-specific risks
  • Evaluating management and corporate governance
  • Credit metrics

    Case study on financial risks
Financial Reporting
  • Accounting refresher: terminology, tricky issues
  • Accounting checklist: key areas to focus on
  • Impact of international accounting standards
  • Current debate on financial reporting
Financial Risk and Cashflow Analysis
  • Key financial ratios
  • Defining cash flow: free cash flow, EBITDA
  • Cash flow cascade and understanding the derivation of cash flows
  • Cash flow adequacy, liquidity and ratios
  • Networking assets
  • Off-balance sheet issues
  • Financial flexibility and consistency

    Analysis of corporate using publicly availble information
Forecasting and Modelling
  • Cash drivers
  • Principles and pitfalls of forecasting
  • Stress test and benefits of forecasts

    Case study: business plan in the car industry
Structuring
  • Credit risk pf debt instruments
  • Documentation issues and covenants
  • Group structures
  • Debt structures, subordination and insolvency regimes
  • Collateral, guarantees and recovery prospects

    Structured finance case study exploring capital structure and debt capacity
Rating Agencies
  • Methodolgy and track record
  • Role of rating agencies and regulatory issues
  • Overview of capital allocation/Basel II/Shareholder Value
  • Notching principles
Financial Distress
  • Key operational indicators
  • Financial early warning signals
  • Recovery Analysis
Management of Credit Risk
  • "Putting it all together": the measurement of credit risk
  • Scoring systems
  • Monitoring credit quality

 

 
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