Corporate Credit Analysis

Introduction:

Corporate credit analysis is a critical process for evaluating the creditworthiness of businesses and ensuring sound lending decisions. It involves assessing financial statements, understanding business risks, and applying analytical techniques to determine a company's ability to meet its obligations. This training program provides participants with a comprehensive understanding of corporate credit analysis, covering key concepts, risk assessment methods, and tools for making informed credit decisions.

Program Objectives:

By the end of this program, participants will be able to:

• Explore the fundamentals of corporate credit analysis.

• Evaluate financial statements to assess a company's creditworthiness.

• Identify key business and industry risks.

• Apply credit risk assessment techniques and models.

• Make informed credit decisions and recommendations.

Target Audience:

• Credit Analysts.

• Corporate Banking Professionals.

• Risk Management Officers.

• Financial Analysts.

• Investment Analysts.

Program Outline:

Unit 1:

Introduction to Corporate Credit Analysis:

• Definition and importance of corporate credit analysis.

• The role of credit analysis in corporate lending.

• Overview of the credit analysis process.

• Key factors influencing corporate credit risk.

• Differences between retail and corporate credit analysis.

Unit 2:

Financial Statement Analysis:

• Analyzing balance sheets, income statements, and cash flow statements.

• Understanding key financial ratios: liquidity, leverage, profitability, and efficiency.

• Assessing cash flow and debt service capacity.

• Identifying trends and red flags in financial statements.

• The importance of accounting quality in credit analysis.

Unit 3:

Business and Industry Risk Assessment:

• Identifying internal and external business risks.

• Industry analysis and its impact on credit risk.

• Competitive positioning and market dynamics.

• Assessing management quality and corporate governance.

• Evaluating macroeconomic factors affecting corporate creditworthiness.

Unit 4:

Credit Risk Assessment Models and Techniques:

• Overview of credit scoring and rating models.

• Applying qualitative and quantitative assessment techniques.

• Using credit risk models like Altman’s Z-Score and Moody’s risk assessment.

• Stress testing and scenario analysis for credit risk evaluation.

• The role of collateral and guarantees in mitigating credit risk.

Unit 5:

Making Informed Credit Decisions:

• Structuring and documenting credit proposals.

• Developing credit recommendations and approval processes.

• Monitoring and reviewing corporate loans.

• Early warning systems for deteriorating credit quality.

• Best practices in corporate credit risk management.