Basic credit analysis introductory
Course
Inhouse
Description
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Type
Course
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Methodology
Inhouse
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Class hours
3h
Credit analysis is increasingly important in an environment of fluctuating interest rates. This program aims to introduce the concepts of credit analysis. There is an explanation of credit-specific terminology and how it is used. There is an introduction to the rating agency process and how it works. The course covers the main credit ratios used in ratings analysis. Drill questions. Suitable for: Anyone who works, or is going to work, with credit orientated information. This course can be used to start your work in this area or as reinforcement if you are a little rusty.
About this course
An understanding of the fundamentals of financial statement analysis
Reviews
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The course is very good.
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Course rating
Recommended
Centre rating
ZIA UR RAHMAN ZIA
Course programme
Overview
- The credit view, assessing debt service capability
- What is the debt that needs servicing?
- Understanding the trading cycle and the effect on cash flow
- The financing gap caused by working capital needs
Definitions of cash
- Operating cashflow
- Funds from operations
- Free operating cashflow
Sources of cash
- Operations
- Asset sales
- New debt issues
- New equity issues
Cash volatility
- Fixed costs
- Variable costs
Credit ratios covering the following areas
- Profitability
- Liquidity
- Leverage
- Coverage
- Efficiency
- Operating leverage
- Calculating breakeven
Ratings
- The ratings process
- Surveillance
- Outlook
Basic credit analysis introductory