Evaluating Credit Risk

Course Overview

The Evaluating Credit Risk training course has been structured as sixteen modules that build upon one another to enhance and develop the skills that are essential to critical thinking and decision-making in today’s market environment.

The programme modules are designed to be highly interactive using a case study, exercises and examples based on real companies and realistic situations. Through these application exercises key learning points are further reinforced and discussion encouraged.

Learning Objectives

• Develop a Comprehensive Understanding of Corporate Credit Risk: Define credit analysis and evaluate the risk/return profile of corporate borrowers, including an in-depth look at documentation, recovery rates, and liquidity in credit markets.

• Master Financial Statement Analysis for Credit Risk Evaluation: Gain proficiency in balancing quantitative and qualitative analysis of financial statements.

• Evaluate the Sustainability of a Company’s Business Model: Acquire the skills to assess the sustainability of revenues, profits, and interest coverage using models like Dupont, and understand the core management competencies of profitability, asset efficiency, and capital structure management.

• Analyse Debt Products and Capital Structures: Understand the factors influencing the selection of funding instruments, the impact of credit products on structures and pricing, and the types of debt instruments available in various markets.

• Conduct Advanced Capital Structure Analysis: Learn to assess the appropriateness of a company’s capital structure, the financial risk within the business model and operating environment, and the implications of leverage from the shareholders’ perspective.

• Understand Priority and Subordination in Credit Arrangements: Master the concepts of effective, contractual, and structural subordination and their implications for credit risk.