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Corporate Credit

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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

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