ADVANCED SKILLS

Credit Analysis Fundamentals and Issues

For further information on dates or how to enrol on to our courses, please call +44 (0)20 7549 2591 or alternatively email our bookings team.

Course details

Credit Analysis Fundamentals

Delegates 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, delegates 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 and peer group
    • Evaluation of business and financial risks
    • How to weigh 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 rating 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. Delegates analyze a variety of case companies by looking at the ratios and metrics used in the credit world. In addition, the session covers debt structuring issues.

Learning outcomes

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

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:

  • e-binder
  • laminated summary sheets
  • 24/7 access to DELTA online learning environment
  • class recordings
  • course notes
  • quizzes
  • electronic homework/study files

“I like that the public courses are supported by online training. I can learn at my own pace and time, which has helped increase my confidence in the work that I do.” ~ research analyst, global financial institution

Virtual Classroom

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

View video to get a flavour of the course

What is a Virtual Classroom

Virtual Classroom training is a new and highly engaging way of delivering programs remotely with enhanced levels of interactivity compared to conventional webinars. In AMT's Virtual Classroom participants are encouraged to activate their own webcams and mics throughout the class allowing for real-time engagement, both verbal and non-verbal, with fellow participants and their trainer. Participants can also share their screens to get instant assistance in any technical exercise; just like asking the trainer to walk over and help in the classroom! We have seen a step-change in participant engagement with this new technology. The trainer's ability to see a selection of their participants' faces in real-time, and to react to their verbal and non-verbal cues creates a remarkably realistic classroom-like experience. For an example of the technical requirements of for our Virtual Classrooms click here.

Course trainers

Prerequisite