Corporate Credit Analysis Techniques

About the Course

The risk landscape is ever-changing, and financial sector professionals must keep up with the latest modern credit analysis. To remain ahead of the curve, they must consistently acquire and develop skills and understand every aspect of managing a successful credit package.

This Corporate Credit Analysis Techniques training course is a deep dive into modern-day credit analysis best practices, including how to adopt current evaluation tools, write comprehensive credit analysis reports, and manage a loan or loan portfolio. The delegates will gain the necessary knowledge and skills to ensure and maintain high loan quality and develop a credit rationale consistent with their organisation's overall lending strategy.

In particular, the delegates will identify inherent risks in borrowers' economies, industries, and businesses and their related mitigants. Prepare financial projections based on assumptions provided by the borrower and test those assumptions by conducting a sensitivity analysis. Structure credit facilities that fulfil the financing needs of a company. Develop a credit rationale consistent with a financial institution's strategy. Analyse factors that may impact the ability to repay debt obligations and learn to document the findings in a written credit analysis memorandum. Develop and practice problem-solving, critical thinking, collaboration, communication, and creativity. Upon completing this training course, the delegates are equipped with a skill set that allows them to apply their learning to real-life credit cases in their organisations and make sound credit decisions.

Core Objectives

Delegates will achieve the following objectives:

• Know the fundamentals of credit and the classic lending principles “5 Cs“
• Understand the complete industry Analysis
• Evaluate the company’s industry, management and strategy
• Analyse financial statements, metrics and ratios, i.e. profitability, liquidity, solvency, and asset efficiency
• Learn about the statement of cash flow: cash flow from operations, cash flows after investment, and cash flows after financing
• Apply lending rationales: Asset conversion cycle, and cashflow lending

Training Approach

This training course is driven by a blended learning approach and draws on various adult learning techniques such as action learning, experiential exercises, group discussions, video case studies, role play and self-reflection activities. The resulting variety helps delegates stay engaged throughout the training course, feel challenged and draw quick wins for their development. It also ensures delegates are exposed to ample opportunities to apply what they learn to the real-world challenges they face back in the workplace.

The Attendees

Finance Professionals or Bankers who struggle to understand or want to expand their knowledge about banking credit-related matters such as Financial Ratio Analysis, Cash Flow Analysis, and Working Capital Assessment to form a sound credit opinion.

This training course will be valuable to professionals, including (but not limited to) the following:

• Corporate Credit Analysts
• Corporate Banking Professionals
• Corporate Risk & Assessment professionals
• Cost Accountants
• Financial Analysts
• Treasury Professionals

Daily Discussion

DAY ONE: CREDIT FUNDAMENTALS

• Capital
• Character
• Capacity
• Collateral
• Conditions
• Funding Sources Equity vs Debt
• Corporate Credit Process

DAY TWO: INDUSTRY ANALYSIS

• Framework for Assessing Corporate Business Growth
• Analyse External Economy using PESTEL
• Analyse a Company’s Industry: MP 5 Forces
• Assess the Company Lifecycle: Risks, and Competitive advantage
• Assess the Company’s Management
• Perform SWOT Analysis

DAY THREE: FINANCIAL STATEMENT ANALYSIS

• Reading Financial Statements
• Spreading Financial Statements
• Vertical and Horizontal Analysis
• Profitability Ratios
• Liquidity Ratios
• Efficiency Ratios
• Leverage Ratios
• Coverage Ratios

DAY FOUR: CASHFLOW ANALYSIS

• Operating Cashflow
• Investing Cashflow
• Financing Cashflow
• Evaluating business Plans
• Building 3 statements Financial Statements

DAY FIVE: LENDING RATIONAL

• Asset Conversion Cycle
• Working Investment
• COGS/Cycle
• Cashflow Lending
• Lending Products: LGs
• Lending Products: LCS