Hong Kong

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Who should attend the course?

  • 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

Course details

Credit Analysis Fundamentals

Participants 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, participants 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, peer group
    • Evaluation of business and financial risks
    • How to weight 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 ratings 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 to accurately reflect the creditworthiness of a company, project or going concern. In addition, the session covers debt structuring issues.


Learning outcomes

  • Complex items from the standpoint of credit analysis
    • Credit fundamentals summary recap
    • Credit approach to adjustments to financial statements
    • Impact on credit quality
    • Rating agency view
    • Pension obligations
    • Operating leases
    • Hybrid securities: equity or debt?
    • Securitizations
    • Off balance sheet obligations
    • Capitalized interest
  • 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
  • Documentation – covenants
    • Concept of covenants
    • Type and benefit of covenants

How to write an investment and credit case

In the context of writing an investment/credit approval case, delegates incorporate the key concepts of credit analysis, credit/investment documentation, syndication/hold recommendations/issues, financial modeling and scenario management. Each of the concepts introduced in class generate the building blocks a realistic credit memo/investment recommendation. Delegates will work in groups alongside the instructor to write a credit case and ultimately deliver a recommendation to the "credit committee/instructor".


Learning outcomes

  • Cash flow analysis
    • Analyzing operating cash flow generation and cash conversion capacity
    • Assessing the impact of future operating investment requirements, including operating working capital management and maintenance capex
  • Capital structure analysis
    • Using credit ratios to assess credit risk (e.g. debt / EBITDA, EBITDA / interest)
    • Understanding structural issues (e.g. cash flow upstreaming issues, structural subordination issues, intercompany debt guarantees, multiple borrowers with joint & several liability, intercompany loans, etc.)
    • Assessing refinancing risk
    • Market data (credit “spread” to measure credit risk, bond prices & bond yields, CDS and credit indices), sources and reliability of data
  • Financing issues
    • Different debt products and which companies realistically have access to them (in the current climate) and what creditors look for in re-financing / new financing
    • Debt terms & conditions including credit ratio covenants and the potential to trigger early debt repayment
  • Restructuring alternatives
    • Debt forgiveness, payment extensions, debt-equity swaps, convertible bonds

"I thought the public course structure was excellent as it flowed seamlessly from topic to topic. The trainer used real world examples, which really helped my understanding of complex subject matter." ~ finance analyst, global investment bank

View video to get a flavour of the course

Course materials

While this is a face to face training course, a blended learning approach is taken and delegates will be provided with access to AMT Online. Our study materials contain both the knowledge and practice materials required to assist with the learning process and help you in your job role. Course materials include:


  • printed course binder with copy of the slides
  • laminated summary sheets
  • 24/7 access to DELTA online learning environment
  • class recordings
  • course notes
  • quizzes
  • electronic homework/study files

Related courses


This course is non-residential. The venue will provide light refreshments. AMT reserve the right to cancel or postpone sessions or change content if registrations are insufficient to continue 2 weeks prior to scheduled commencement date. Registrants will be given at least 5 business days’ notice of such changes.