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Credit Analysis

City Training UK
Course summary
3.5 hours
500 - 750 GBP excl. VAT
English
Full time
London, Online courses
Professional Training

Course description

Credit Analysis

This training course in London provided by City Training will give participants a developed knowledge of credit analysis. Through through a mix of lectures and interactive case studies, participants will be able to perform a detailed credit analysis, including analysing market and environment, computing key financial ratios, interpreting cash flows and analysing financing needs.

Key Topics

  • Financial needs and the business operating cycle
  • Review of financial statements
  • Financial ratio analysis
  • Corporate cash flow analysis
  • Cash flow projections for debt service
  • Key lending policy guidelines

About the Trainer:

Jean has 10 years of experience in accounting and credit analysis. He began his career at KPMG in Luxembourg, auditing and preparing financial statement for mainly bank and insurance clients. Jean then continued his career as a Credit Analyst at Societe Generale in Belgium, where he conducted credit analyses for short and long-term credits and participations in loan syndications.

Jean has an engineering undergraduate degree from Solvay in Belgium and is a fully-qualified accountant in Luxembourg.

Suitability - Who should attend?

This course is designed for participants who are:

  • Credit analysts in Corporate Banking
  • Credit analysts in SME retail banking
  • Credit managers in corporations
  • Factoring professionals
  • Debt Capital Markets in Investment Banks
  • Fixed Income Equity Research
  • Fixed Income Investment Management
  • All other interested Finance professionals

Training Course Content

The content of this course is split into nine sessions:

Session 1 Introduction and Overview: What is Credit?

  • Risks defined
  • What is the role of the credit analyst?
  • The Principles of good lending
  • The key analysis tools
  • Sources of information

Session 2 A Common Approach to Analysing Credit

  • What are the objectives and general characteristics of an effective credit risk rating system
  • The building blocks
  • The structured framework of credit analysis
  • Assessing performance
  • Understanding and evaluating Business Risk:
    - Macro (sovereign and country)
    - Micro (industry)
    - Management
  • Industry life-cycle

Session 3 Financial Needs and the Business Operating Cycle

  • Financial risk
  • Banks and banking:
    - Types of banks
    - Types of loans
  • Business needs
  • Corporate operating cycle and financing

Session 4

A Review of the Financial Statements

  • Principles of Accounting
  • Understanding the financial statements:
    - Type of information
    - Key issues
    - Consolidation rules

Session 5 Financial Ratio Analysis

  • Types of financial ratios:
    - Business efficiency
    - Profitability
    - Financial
    - Du Pont analysis
    - Other ratios
  • Liquidity vs. Solvency
  • Seasonality and management of working capital and the implications on financing
  • Interpretation and application of results
    - Limitations of ratio analysis
  • Insights

Session 6 Corporate Cash Flow Analysis

  • Statement of Cash Flow (construction and analysis)
    - Key issues to consider
    - The cash cycle
  • The Statement of Cash Flow:
    - Methods of Cash Flow presentation and construction
    - Traditional (CFO, CFI, CFF)
    - Manual (Direct and Indirect)
    - Rating agency derived (FCF)
  • Identifying the 7 drivers of cash flow
  • Cash Flow Available for Debt Service (“CADS”)
    - Debt Capacity
  • EBITDA

Session 7 Financial Projections

  • Models (what we really want to know is what happens next)
    - Projection methodology
  • Short and Medium/Long-term
    - Projections
    - Judgments
  • Management influence
  • Projection problems

Session 8 Structural Risk Analysis

  • Myths, realities, opportunities and threats
  • The optimal debt structure
  • Factors influencing the choice of debt or equity
  • Structuring principles and issues:
  • Structuring a transaction
  • Facility type
    - Seniority
    - Security
    - Covenants (Affirmative/Negative)
    - Structural mitigants
    - Control provisions (What do the Lender/Borrower want?)

Session 9 Credit Risk Lending Policy Guidelines

  • Credit Analysis format
    - How to put together a credit analysis – methods of presentation
    - Participants to discuss the best method of presenting standardised information throughout the bank
    - A study of the bank’s guidelines to enable participants to apply what they have learnt to the bank's own practices (this may involve a senior in-house speaker)

Why choose City Training UK

100% specialised on Corporate Finance with more than 20 different topics

Hundreds of participants trained from heads of departments to recent graduates

10 specialised trainers at minimum VP-level in leading financial institutions

About provider

City Training UK

City Training is a highly-distinguished supplier of premium public courses, in-house training, and courses for universities and schools. The company focuses solely on financial training and covers the areas of financial accounting, corporate finance, valuation, credit analysis, regulatory capital, mergers and...


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Contact info

City Training UK

100 Pall Mall, Saint James
SW1Y 5NQ London

 Show phone number
citytraininguk.com

Reviews

Average rating 4.9

Based on 8 reviews

Josh
(5)
Great credit analysis training course which was tailored to what I wanted to get out of the course. Would recommend.
Mahmoud A, Credit Analyst, Societe Generale
(5)
Solid course. Trainer took time to explain to people with less finance background like myself
Abigail A, Credit Analyst, HSBC
(5)
Was helpful overall particularly the final detailed case study on a real life situation. Will be able to use it in the future
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