Fundamentals Of Corporate Credit

This seminar provides participants with a solid foundation of skills that helps them reach sound, reliable judgments of a company's creditworthiness. Applying a structured framework, delegates will be able to identify and assess key qualitative and quantitative factors in determining credit risk.

Course Objectives

Upon completion of this seminar, delegates will be able to:

• Apply a structured framework to the credit analysis process
• Assess the role of management in the financial performance of a company
• Understand financial statements, their structure and composition, and basic accounting concepts and principles
• Calculate and interpret key ratios used to evaluate the repayment prospects of a company Determine cash movement dynamics and ascertain their importance in the analysis process Summarize the key risks associated with a borrower and communicate them effectively

Who Should Attend?

The seminar is aimed at all those who would like to acquire a solid foundation of credit risk analysis skills, and/or those who simply need a “refresher” of their existing skills. Delegates can come from a broad range of backgrounds, such as

• Commercial credit analysts
• Commercial lenders, loan officers, and relationship managers
• Fixed income professionals
• Investors
• Other financial professionals

Course Outline

Introduction
The pyramid of corporate credit analysis Forms and types of businesses Group exercise

The Qualitative Analysis
Sovereign/macro-economic environment Assessing management quality Group exercise

Understanding Financial Statements
The annual report and accounting essentials Statement structure and composition Accounting concepts and principles Audit report Group exercise

Operating and Financial Position
Ratio analysis Role of ratio analysis Structured approach to ratio analysis Asset conversion cycle Group exercise

Cash Flow Analysis
The difference between cash and accrual accounting Different formats of cash flow statements Constructing a cash flow statement Group exercise Interpreting movements in cash with different cash flow formats Group exercise

Projections and the Credit Decision
Introduction to the mechanics of projections Group exercise

Putting It All Together -- Preparing a Projection Analysis in Response to a Loan Request
Case Study -- Using the published data of a major company, delegates prepare and present a loan proposal to a 'credit committee'

Course Methodology

A variety of methodologies will be used during the course that includes:

• (30%) Based on Case Studies
• (30%) Techniques
• (30%) Role Play
• (10%) Concepts
• Pre-test and Post-test
• Variety of Learning Methods
• Lectures
• Case Studies and Self Questionaires
• Group Work
• Discussion
• Presentation

Course Fees

This rate includes participant’s manual, Hand-Outs, buffet lunch, coffee/tea on arrival, morning & afternoon of each day.

Course Timings

Daily Course Timings
08:00 - 08:20       Morning Coffee / Tea
08:20 - 10:00       First Session
10:00 - 10:20       Coffee / Tea / Snacks
10:20 - 12:20       Second Session
12:20 - 13:30       Lunch Break & Prayer Break
13:30 - 15:00       Last Session