Corporate Credit Analysis

This workshop aims to provide a structured approach to develop core competencies in credit risk evaluation for corporate clients. Participants will learn basic accounting concepts and their impact on financials, and the credit evaluation framework.

Participants will work on cases to gain hands-on experience in financial analysis and construction of financial forecasts to determine loan servicing capability. Participants are taught to recognise triggers to potential default and set up early warning systems to ensure loan repayment.

Learning Objectives:

• Learn the general principles of corporate lending

• Understand the credit evaluation framework and process

• Determine the key lending risks

• Assess credit worthiness of a potential borrower

• Predict corporate distress at an early stage

• Mitigate risks with appropriate covenants, collateral and credit support

• Identify key components in the loan agreement to protect the lender

• Appreciate the relationship between risk-based pricing and facility structuring

Topics/Structure

Overview on Lending Process

• Principles of good lending

• Essential components of a credit proposal

Credit Evaluation Framework

• Components of credit risks

• Quantification of credit risks

• Qualitative factors (External factors, Borrower’s risks, Borrowing entity)

Understanding Financial Statements

• Key accounting concepts

• Core financial statements

Financial Analysis & Drivers

• Profitability analysis

• Cash flow analysis

• Debt service analysis

• Liquidity & leverage analysis

• Funding structures

• Financial projections 

Credit Rating

• Internal vs. external rating

• Categories of credit risk models

Loan Monitoring & Management

• Loan classification

• Customer review

• Early warning signs

Who Should Attend

• New hires and management associates in banking

• Professionals in banking and corporate responsible for extending credit to borrowers

• Sales, relationship managers, product specialists and those in support functions, looking to deepen understanding of corporate lending and credit risk

Assessment

As part of the requirement for SkillsFuture Singapore, there will be an assessment conducted at the end of the course. The mode of assessment, which is up to the trainer’s discretion, may be an online quiz, a presentation or based on classroom exercises.

Participants are required to attain a minimum of 75% attendance and pass the associated assessment in order to receive a digital Certificate of Completion issued by Singapore Management University.