CCP Intermediate- Corporate credit Analysis

By admin Categories: CCP
Wishlist Share
Share Course
Page Link
Share On Social Media

About Course

UNIT DESCRIPTION

The paper is intended to equip the candidate with the knowledge, skills and attitude that will enable him or her to make effective corporate lending decisions.

 LEARNING OUTCOMES

A candidate who passes this paper should be able to:

  • Undertake credit analysis for dynamic corporates
  • Appraise risk tendencies of an entity’s management team and their influence on financial and operating decisions affecting creditworthiness
  • Assess credit risk of debt instruments
  • Examine the impact of debt instruments and debt structures on firm’s recovery prospects in case of insolvency.
  • Evaluate the shaping of a corporation’s business by action of a sovereign government.

What Will You Learn?

  • The paper is intended to equip the candidate with the knowledge, skills and attitude that will enable him or her to make effective corporate lending decisions.

Course Content

1. Overview of Credit Analysis
1.1 Lending philosophy 1.2 Identifying credit opportunity 1.3 Stages of analysis to a credit proposition 1.4 The credit decision 1.5 Credit monitoring

  • Overview of corporate Anaysis
  • Revision questions

TOPIC 2. Overview of Coporate Borrowers
.Types of corporates and their key features .Considerations in lending to corporates .Credit Risks associated with various corporates .Considerations in lending to groups of companies/conglomerates

Topic 3. Corporate Strategy And Credit Risk
Analysis of Credit Risks inherent in a corporate’s: Business strategy Business model Financial strategy Marketing strategy

TOPIC 4: STRUCTURING CREDIT PRODUCTS
4.1 Objectives and process of facilities structuring 4.2 Loan agreements and covenants 4.3 Covenant clauses in lending 4.4 Facility pricing and structuring 4.5 Loans amortisation

Topic 5. The Management Factor
Managerial behavior and corporate’s credit profile Competences of key management position Assessment of corporate governance Influence of management actions on corporate performance

6. Corporate Financial Risk Analysis
6.1 Importance of financial policies in Credit analysis 6.2 Firm’s risk tolerance 6.3 Credit measures relative to financial reports 6.4 Forecasting and sensitivity analysis of corporate cash flow drivers.

Topic 7.Credit Risk on Debt Instruments
Types of debts instruments Debts instruments pricing Insolvency regimes and debt structures Estimating recovery prospects on debt instruments

8. INDUSTRY CREDIT RISKS
8.1 Credit profiles of various industries and sectors 8.2 Industry life cycle Stages 8.3. Patterns of Business cycles and seasonality 8.4 Limitation of corporate's credit quality by specific industry risk

9. ANALYSIS OF SOVEREIGN AND COUNTRY RISK
9.1 Impact of countries rules and regulations business activity and credit risk. 9.2 Influence of political, legal and financial systems on corporates credit risk profiles 9.3 shaping of credit risk by a country's infrastructure and natural endowments 9.4 Country macroeconomics policies and corporate credit risks

10. CREDIT MONITORING AND CONTROL
10.1 Managing loan portfolio 10.2 Identification of warning signs of bad and doubtful debts 10.3 Early symptoms of financial distress 10.4 Dealing with problem accounts 10.5 Causes of credit deterioration and its control 10.6 Corporate remedial action - Recovery and restructuring 10.7 Loan workouts

PAST PAPERS
PAST PAPERS

REVISION QUESTIONS

Student Ratings & Reviews

No Review Yet
No Review Yet