Training course on Corporate Credit Analysis

Module 1: Introduction to Corporate Credit Analysis

Role of credit analysis in banking and financial markets

Key principles of assessing credit risk

Credit cycle and its impact on lending decisions

Module 2: Understanding Corporate Financial Statements

Balance sheet, income statement, and cash flow statement review

Accounting adjustments and common pitfalls

Red flags in financial reporting

Module 3: Financial Ratio Analysis

Liquidity, solvency, profitability, and efficiency ratios

Leverage and capital structure evaluation

Benchmarking against peers and industry standards

Module 4: Cash Flow and Repayment Capacity Analysis

Direct and indirect cash flow analysis

Free cash flow, debt service coverage, and leverage metrics

Sensitivity and stress testing cash flows

Module 5: Industry and Business Risk Assessment

Industry life cycle and competitive dynamics

Business model resilience and market positioning

Macroeconomic and regulatory influences

Module 6: Credit Rating Methodologies

Internal vs external rating systems

Scoring models and qualitative factors

Case study: constructing a credit rating

Module 7: Loan Structuring and Covenants

Types of loan facilities (term loans, revolving credit, syndicated loans)

Collateral evaluation and security packages

Designing financial covenants and monitoring compliance

Module 8: Identifying Warning Signs of Credit Deterioration

Early warning indicators in financial and non-financial data

Credit migration and default prediction models

Recovery and workout strategies

Module 9: Credit Analysis in Specialized Sectors

Corporate credit in cyclical vs defensive industries

Project finance and infrastructure lending

SMEs and family-owned businesses

Module 10: Writing and Presenting Credit Reports

Structuring credit memos and risk assessments

Communicating credit opinions to committees and regulators

Balancing risk and business opportunity in recommendations

Module 11: Case Studies in Corporate Credit Analysis

Real-world examples of successful and failed corporate credits

Lessons learned from major defaults and restructurings

Module 12: Capstone Project and Practical Simulation

Group exercise: analyzing a company’s credit profile

Preparing and presenting a credit approval memo

Peer and instructor feedback session