Introduction to Corporate Credit Analysis

Course outline and objectives

It is crucial that staff working within both relationship and credit teams of corporate and commercial banks can properly interpret the trading performance (both financial and non-financial) of their corporate borrowers.

This programme is designed to introduce staff with only a basic background in credit analysis to the key components of corporate credit analysis.

We will explore non-financial performance using a variety of strategy models to explore and interpret business performance and risks. We will then overlay a financial analysis and seek to link the financials with the business performance. Then finally we will consider the key risks within a deal and how they can be mitigated through effective deal structuring.

Attending will help you:

• Understand the key drivers of corporate performance and the variables which impact profitability and cash generation. It will provide a series of simple tools to allow you to assess industry dynamics, the impact of external forces on business performance, as well as competition, corporate strategy, product development and market development issues.
• Relate these non-financial factors with the financial measures used by Banks to interpret business performance. These will include sales and profit measures, working capital, debt and leverage levels and finally liquidity and cash generation.
• Consider the importance of deal structure when assessing a borrowing request - products, tenor and repayments, collateral, covenants and MI requirements which the Bank can use to ensure deals remain on track and provide protection in the event of downside scenarios.

Who will benefit?

This course will be of value to anyone responsible for understanding or analysing corporate and commercial customers. It is suitable for staff new to the role, or with relatively limited experience.

Topics may include, but are not limited to:

• Non-financial analysis
• Overview of the key strategic models
• Financial analysis
• Commonly used financial ratios
• Key drivers of cashflow
• Structure risk