Introduction to Credit Risk Analysis

Credit risk analysis is a fundamental skill that never goes out of style. Whatever your industry or department, a solid grounding in evaluating credit risk is highly adventageous if not absolutely required. This one-day course, enhanced by a hands-on case study, provides a framework and overview of the credit analysis process.

16-Jun-2008 -- 16-Jun-2008StamfordUSD$1475
NY Institute of Finance - Stamford, CT9:00am - 4:30pm Instructional Method:
Group-Live
Instructor(s): [ Laura Berman; ] Mon Level: Basic
CPE Credits: 7.0

03-Nov-2008 -- 03-Nov-2008New YorkUSD$1475
NY Institute of Finance - Downtown9:00am - 4:30pm Instructional Method:
Group-Live
Instructor(s): [ Laura Berman; ] Mon Level: Basic
CPE Credits: 7.0

08-Dec-2008 -- 08-Dec-2008StamfordUSD$1475
NY Institute of Finance - Stamford, CT9:00am - 4:30pm Instructional Method:
Group-Live
Instructor(s): [ Laura Berman; ] Mon Level: Basic
CPE Credits: 7.0

Individuals who require familiarity with credit basics and the associated language, but who do not necessarily work in a credit or finance function.
No advance preparation required.
Students will be able to:
  • Be introduced to credit vocabulary, the process of business & industry analysis, the calculation of historical financial ratios, and the analysis of both historical ratios and cash flow
  • Use these tools to analyze a public company and draw conclusions
Familiarity with corporate balance sheets and income statements. Financial calculator is required.
"Great overview and first brush at a very involved subject."
"The cases and exercises were very helpful."
"Good overview of this very complex field"
Introduction to Credit Risk Analysis

Introductions and Learning Objectives

  • The Credit cycle - Where are we in the cycle?
  • Market trends
  • Investment grade vs. high yield
  • Fallen angels
  • The 5 Ps and 5 Cs of credit
Balance sheet recognition exercise

Business and Industry Discussion

  • The Porter Framework
  • SWOT analysis
  • The Cash Conversion Cycle
  • Business vs. Financial risk
  • The Importance of Management
  • Ownership
Various companies will be used to illustrate the above points

Purpose and Payment

  • Primary and Secondary Sources
  • Financial Statement Analysis, including the following:
  • - Ratio Calculation and Analysis: Profitability, Asset Effeciency, Liquidity, Debt Service, and Coverage, Leverage & Capital Structure, Performance
  • The Impact of Accounting Methods
  • Off Balance Sheet Considerations
  • Peer Analysis, Trend Analysis, Industry Benchmarks
  • Cash Flow Analysis
In this segment the class will calculate actual ratios and analyse the cash flow for a recognized company, conclude on the financial condition, evaluate early warning signs, and compare findings with what really happened.

Protection

  • Collateral/Liens
  • Guarantees

Perspective

  • Financial Risk Rating
  • Rating Agencies: Who They Are and What They Do
  • Rating Agency Limitations and Implications for the Analyst

Clients who register for this course will receive a complimentary 6 month subscription to the Financial Times and FT.com. The Financial Times is the world's most respected financial newspaper providing a broad assessment on finance, business and the industrial sector. Subscriptions will start within 6-8 weeks of the application process, and are limited to one per client. For questions about your subscriptions call 800-628-8088 or email uscirculation@ft.com. US and Canada enrollees only.

Lunch included for all students taking day classes.