Corporate Credit

Analysing Corporate Credit Risk, (One Day)

Does your treasury get exposure to corporate credit risk? It may be through your bond portfolio or from customer deals. In a more volatile market do you just say "no" or should you adopt a thorough screening process?

Learn a structured and rigorous approach to corporate credit risk assessment including:

• Analysing data and trends
• Financial statements
• Ratios
• Contingent liabilities
• Assessing business risk
• Corporate governance

This one day in-house course is aimed at small and medium sized firms with limited credit resources.

These are the details:

Morning

Analysing Financial Data, Trends and Ratios

• The balance sheet -  key indicators
• Working capital
• The Income statement and cash flow statement

Ratio Analysis

• Key ratios and how you use them

Beyond Ratios

• Liquidity analysis
• Off balance sheet and contingent risks
• Retirement obligations
• Foreign exchange and derivatives obligations
• Operating lease commitments
• Capital commitments

Afternoon

Business Risk Assessment

• Industry sector strengths and weaknesses
• Economic conditions
• Assessing the outlook
• The competitive landscape
• Relationships with suppliers, customers & the labour force
• Management strategy

Management, Control and Structural Risks

• The risk tolerance of management and owners
• Corporate governance
• Political and regulatory influences
• The status of creditor’s claims: subordination & security
• Identifying downside risks

Presenting your Analysis

• How to prepare a concise report

End of workshop and review