Corporate Credit Analysis takes a diagnostic approach - it teaches participants what to look for when assessing the financial health of a corporation. Participants explore the implications of financial and non-financial credit and business risks on corporate credit. They learn how to structure a loan, and the best methods for monitoring and standardizing credit control procedures. At every stage of the series, students are asked to apply credit analysis theories to practical case studies drawn from different countries and industrial sectors.
Who should take this course:
Entry level professionals, investment professionals, research analysts, corporate bankers, fixed income analysts, credit analysts, equity analysts, mergers & acquisitions professionals and mid level career transitions.
Prerequisites:
Financial Statement Analysis or equivalent level of knowledge
Training Hours/CPE Credits:
5
Modules
Introduction to Corporate Credit Analysis
Module Code
:
cred_3003
Level
:
Basic
Training Hours/ CPE Credits
:
1
Module Description:
In this introductory module we're going to define credit analysis, and look at some of the reasons why it's so important to lenders. We're also going to explore some of the different kinds of loans and the steps involved in making a loan.
Learning Objectives:
After completing this module, you'll be able to:
Define corporate credit analysis
List the benefits of corporate credit analysis
Discuss the reasons why a bank lends money and why corporations borrow
Recognize the different types of loans
Identify the components of the lending process
Industry and Company Forecasting
Module Code
:
crpf_1028
Level
:
Basic
Training Hours/ CPE Credits
:
1
Module Description:
Accurate financial forecasting lies at the heart of credit appraisal. Knowing how a company has performed over time generally establishes a pattern indicative of how they're likely to perform in the future. To understand whether a company can repay its debts and make its interest payments, you need to know what the company's income, expenditures, and cash flow will be going forward. Forecasting requires two levels of analysis: the industry level and the company level. So we'll be looking at both in this module as they apply to the supermarket industry. We'll end the module with a discussion of sensitivity and scenario analyses, which we use to improve the quality of our forecasts.
Learning Objectives:
After completing this module you'll be able to:
Define the stages of the industry/product life cycle
Recognize industry metrics used to analyze performance and trends
Describe the areas of the financial statements that are the focus of company forecasting
Identify the purpose and components of sensitivity and scenario analyses
Financial Analysis
Module Code
:
crpf_1029
Level
:
Basic
Training Hours/ CPE Credits
:
1
Module Description:
In this module we're going to focus on financial ratios and how to apply them to credit analysis.
Learning Objectives:
After completing this module, you'll be able to:
Define the different types of ratios used for credit analysis.
Explain what the different ratios tell us from a credit analysis perspective.
Recognize the factors that go into determining a company's optimal capital structure.
Recognize the limitations of financial information in credit analysis.
Non-Financial Analysis
Module Code
:
crpf_1030
Level
:
Basic
Training Hours/ CPE Credits
:
1
Module Description:
You have to do the numbers to make an accurate credit analysis, but you also have to look at non-quantitative data — that is, the qualitative, non-financial aspects of credit analysis. And that's what this module will focus on.
Learning Objectives:
After completing this module, you'll be able to:
Define the five forces in the Porter model.
Recognize the elements of PEST analysis.
Determine the different types of corporate strategies and the role of management in their implementation.
Identify the different corporate structure issues and their implications for credit analysis.
Describe SWOT analysis.
Credit Ratings and Credit Scoring
Module Code
:
cred_1011
Level
:
Basic
Training Hours/ CPE Credits
:
1
Module Description:
In this module we'll be looking at the role of credit rating agencies, and the process that these agencies use to evaluate companies. We'll conclude the module with a discussion of credit scoring models.
Learning Objectives:
After completing this module, you'll be able to:
Describe the role of rating agencies in credit analysis.
Identify the process that rating agencies use to rate companies.
Recognize the components of the Z-score, RiskCalc, and KMV models.
