Corporate Credit Rating Analysis

The overall goal of this course is to enhance analytic skills needed in the assessment of corporate borrowers or counterparties. We also cover qualitative analysis, credit ratings, the impact of corporate finance activity on credit quality, LBOs and corporate credit documentation, including covenants.

The Corporate Credit Analysis course serves as a comprehensive exploration of essential tools and methodologies for fundamental credit analysis, spanning a duration of five days. Focused on single obligor analysis, the course delves into both qualitative and quantitative aspects.

Participants gain insights into evaluating actual market scenarios, assessing cash flow, and understanding credit implications. The curriculum commences with an overview of credit risk, its constituents, and influencing factors. It subsequently addresses business risk assessment, group structure risks, financial statement analysis, accounting principles, and concludes with an in-depth examination of the four primary risk areas in financial analysis.

Objective

• Enable participants to develop a structured approach to credit analysis applicable across various corporate credit scenarios.
• Conduct in-depth quantitative risk assessments, including calculation and interpretation of key credit ratios.
• Evaluate qualitative risks, considering sovereign, industry, and company-specific factors.
• Analyze leverage comprehensively, exploring its determinants and strategies for establishing an optimal capital structure.
• Assess the factors influencing credit pricing and determine whether credit investors are adequately compensated for the risks across the credit cycle.
• Examine structural considerations, including ownership, double leverage, structural subordination, and contractual subordination.
• Explore effective methods for structuring a company’s debt financing.
• Review credit documentation with particular attention to covenants and their implications.