Course Category

Corporate Credit Risk Judgment

The Corporate Credit Risk Judgment Seminar is an four day course on corporate credit risk assessment and application. The course develops a framework and methodology for evaluating credit risk using current annual reports and industry information, rather than artificial cases. This framework and methodology leads to participant evaluation of credit ratings that are expressed in terms of a percent likelihood of default (company or issuer ratings) and adjusted default ratings that adjust for a percent likelihood of loss given default (facility or issue ratings).

The default rating methodology includes risk rating assessment of business risk (industry risk, competitive position, management), as well as financial risk (financial policy, profitability, leverage, cash flow and financial flexibility) and techniques for integrating these factors to come up with an overall default rating. The loss rating methodology includes methods for evaluating recovery based on enterprise and liquidation values, as well as on adjustments for collateral, covenants and structural and contractual seniority and subordination.

More important, while the training includes credit risk analysis, the primary focus is on credit risk judgment. The course uses mock rating committees and group presentations as an aid to developing a working knowledge rather than just a familiarity with the subject. The course includes both investment grade and non-investment grade cases. The course includes pre-course reading material, course handout material, and post course methodologies for updating the materials covered in the course.

• Develop the capacity to evaluate the risk of lending or investing in different industries
• Develop the capacity to evaluate a company's default risk rating
• Develop the capacity to evaluate a credit exposure's expected loss given default

Lunch included for all students taking day classes.