Course Objectives
Participants are encouraged to become more time efficient, focused and concise in articulating credit judgement.
Specifically participants will be equipped to:
- Understand and evaluate a company's performance and capital structure using both qualitative and quantitative frameworks and tools
- Understand how to use financial information effectively including footnotes, ratios and financial spreadsheets
- Determine how to apply the analytic techniques across different industries
- Determine the key factors that drive a company's future performance and the implications on its credit standing
- Understand how credit ratings influence credit pricing and a company's access to capital.
This workshop makes extensive use of case studies, live examples and exercises to ensure that the training is highly interactive, practical, topical and challenging. Case studies are drawn from a number of countries and industries and provide participants with the opportunity to practise the application of the analytic frameworks and tools in context.
Target Audience
For fixed income professionals, lending bankers, and other finance professionals working in credit risk management and credit products areas, including relationship management and debt origination.
Participants should have a firm grasp of accounting and be familiar with basic credit concepts before attending this programme.
The majority of Fitch Training programmes are offered at an intermediate and advanced level. There are no specific prerequisite courses to attend our programmes, however some topic knowledge maybe required. Please refer to the target audience to see what level of prior knowledge is required for a specific course.
Content
The analytic tools and frameworks for credit analysis are taught and demonstrated through a wide variety of live examples, case studies and exercises. The course is highly interactive, practical and challenging. Case studies and exercises are drawn from a range of industries.
Analytic Approach
- Introduction to a structured approach to evaluate corporate borrowers - purpose, payback, risks to repayment and structure
- Understanding credit ratings, criteria adopted and analytic approaches applied
- Understanding the market's perspective of risk & return
Qualititave Frameworks
- Industry dynamics - understanding the industry structure, key drivers and critical success factors
- Determining appropriate measures and industry benchmarks
- Using the business cycle model to understand and assess a company's operations
- Understanding a company's competitive position - assessing the strategic direction of the firm, the sustainability of competitive advantages and the implications
- Understanding the decision makers - frameworks for analysing management and shareholders
Quantitative Frameworks
- Evaluating operating performance - identifying the key ratios and financial measures (turnover, net working capital, EBITDA and cash-flow measures)
- Evaluating the capital structure - identifying the key ratios and financial measures (debt/EBITDA, coverage ratios, ability to meet discretionary and non-discretionary payments, risk profiles of funding instruments and access to financial resources)
- Identifying and quantifying off balance sheet obligations
- Comparing capital structures and their impact on ratings and spreads
- The appropriate use of peer analysis and industry benchmarks to assess creditworthiness
- Using cash-flow forecasts to quantify debt capacity and refinancing risk
Structure
- Purpose/payback framework for structuring funding proposals
- Key terms and conditions to protect the lender's interests.
Workshop Times
Below are typical timings for our courses; upon registration we shall advise you if these have changed.
Breakfast: 8.30am
Course Start: 9.00am
Course End: Between 5.00pm and 5.30pm
Lunch starts between 12.30pm and 1.00pm, and lasts no longer than 1 hour.
Short breaks of 10 - 15 minutes are taken mid morning and mid afternoon.