Corporate Credit Analysis(Oct. 7-9) In-person

Oct 07 2024

Corporate Credit Analysis(Oct. 7-9) In-person

9:00am
National Banking College

Background

The type of lending portfolio built-up will determine how much reward will accrue to a bank. Corporate borrowers contribute immensely to the profitability of most banks but require good relationship management. On the other hand, credit default by some corporate borrowers could lead to rapid deterioration of the credit portfolio of banks. Banks are therefore expected to understand the business of their corporate borrowers to manage their risk-return profiles.

This course will be using a typical credit analysis framework to evaluate Corporate clients borrowing needs.

Programme Objectives

Develop a good appreciation of the challenges and opportunities applicable to the corporate segment from a financing perspective.
Evaluate the risks applicable to a business in relation to the operating cycle.
Assess the role of management in mitigating these risks.
Diagnose borrowing causes and be able to structure facilities to meet the needs of the business.
Integrate historical information in respect of the industry, business and financial position into a cash flow forecast and be able to determine repayment capacity.
Understand the use of triggers in the control and monitoring of facilities.
Reduce the risk of loss to the bank through focused and effective loan management.

Course Outline

The course outline would include the following:
Introduction to a Value-based Credit Analysis framework
Historical analysis
Identifying the key qualitative and quantitative issues
Management quality and governance structure
Business risks: industry, operating cycle, and value drivers
Financial risks: establishing links with the operating cycle.
Cash flows and liquidity, exploring the relationships.
Projecting forward – linking past with present realities and future expectations.
Business projections
Financial forecast.
Loan structuring
Matching appropriate credit facility to a business’s borrowing needs
Evaluating collateral in respect of risk mitigation and control of lending
Setting effective covenants and risk triggers
Loan monitoring
Setting account management plans
Identifying early warning signals.

Target Group

Senior Credit Analysts/ Credit Analysts
Senior Relationship Managers/ Relationship Managers
Credit Approvers
Senior Credit Administrators
Business Heads involved in Lending Activities
Debt Restructure and Recovery Unit Managers
Project Appraisal Managers

Corporate Credit Analysis(Oct. 7-9) In-person