Public Course

Credit Analysis Fundamentals and Issues

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  • What you'll learn
  • What is a Virtual Classroom
  • Prerequisites
  • What you'll learn
  • Credit Analysis Fundamentals

    Delegates gain understanding of the credit rating process by examining the assessment of both operational and financial risks of the business. By the end of the session, delegates derive a rating for a case company.

    Learning outcomes

    • What is credit analysis?
    • Ratings scales
    • Default and recovery rates
      • Issuer and issue ratings
    • Purpose of credit analysis
    • Nature of credit risk
      • Asymmetric nature of credit risk
      • Difference between up/downside of equity and credit
    • Credit analysis - analytical approach
      • Key principles: cash-based, forward-looking and peer group
      • Evaluation of business and financial risks
      • How to weigh different risks
    • Business risks
      • Key drivers of business risk and their identification
      • Macro, industry and company-specific evaluation
    • Financial risk
      • Key components of financial analysis
      • Cash flow analysis from a credit point of view
      • Various cash flow concepts of rating agencies
      • Credit ratios: most common ratios and their application
      • Credit ratios according to the rating category
      • Financial policy analysis
    • Rating Agencies: overview

    Credit Analysis Issues

    This program analyzes the financials from the credit perspective, making technical adjustments to the main numbers. Delegates analyze a variety of case companies by looking at the ratios and metrics used in the credit world. In addition, the session covers debt structuring issues.

    Learning outcomes

    • Complex items from the standpoint of credit analysis
      • Pension obligations
      • Operating leases
      • Securitizations
      • Off balance sheet obligations
      • Hybrid securities: equity or debt?
      • Credit approach to adjustments to financial statements
      • Impact on credit quality
      • Rating agency view
    • Structural issues in credit analysis
      • The importance of structures and assessment frameworks
      • Notching up / down of debt
      • Contractual subordination
      • Structural subordination
      • Parent / subsidiary link
      • Rating agency methodology
      • Typical HY structures
    • Documentation - covenants 
      • Concept of covenants
      • Type and benefit of covenants
    • What is a Virtual Classroom
    • Virtual Classroom training is a new and highly engaging way of delivering programs remotely with enhanced levels of interactivity compared to conventional webinars. In AMT’s Virtual Classroom participants are encouraged to activate their own webcams and mics throughout the class allowing for real-time engagement, both verbal and non-verbal, with fellow participants and their trainer. Participants can also share their screens to get instant assistance in any technical exercise; just like asking the trainer to walk over and help in the classroom! We have seen a step-change in participant engagement with this new technology. The trainer’s ability to see a selection of their participants’ faces in real-time, and to react to their verbal and non-verbal cues creates a remarkably realistic classroom-like experience. 

    • Prerequisites
    • There are no prerequisites for this course.

              Pre-Requisites

              Who should attend?

              New hires who have joined the firm late and missed the in-house program

              Individuals looking to fill a knowledge gap

              Experienced bankers looking to refresh their technical skills

              Teams employed in financial strategy roles from non-banking corporations

              Graduates preparing to interview for a role in the finance sector

              Students at business school and looking for a career in finance

              What to use

              You need to use a Windows-based laptop for the training with Excel and Adobe installed on your system to access your course files. Our teaching materials are designed for PCs and not MAC based systems. Download details for the necessary files will be emailed a few days before the course. You can use any version of MS Excel in class. Please inform us of your Excel version when booking your course.

              Ask our trainers

              If you have any questions about the course content, you can email our experienced trainers for any further questions

              Contact a trainer

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