Corporate Credit Analysis
Corporate Credit Analysis
Corporate Credit Analysis
COURSE HIGHLIGHTS
Real Case Studies

Real company case studies to test your newly learnt skills

CPD Recognized

This course is Continuous Professional Development (CPD) recognized

Highly Interactive

Highly interactive with small group size led by industry expert trainers


Corporate Credit Analysis

Duration: 4 Days ･ CPD Points: 32 ･ Level: Intermediate

Delivered by Fitch Learning, in partnership with the GICP.

Looking to level up your corporate credit analysis knowledge? Equip yourself with the skills needed to succeed and accelerate your career in this hands-on course.

Read more about the course.

Delivery Method Live Online
Location London
Dates 22-25 Oct 24
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Course Details

You’ll develop the analytical skills needed to assess corporate borrowers and counterparty risk. You’ll also learn how to evaluate the credit standing of companies from various industrial and service industries using a structured, methodical approach. Plus, how to articulate your credit judgement in a focused and concise way. This is a hands-on course, whether you take it in-person or virtually. We bring key points to life through practical case studies and exercises, so you can apply your learning to real scenarios within your role. 

Key Learning Outcomes: 

  • Apply a structured approach to assess the creditworthiness of a corporate borrower
  • Evaluate the performance of a company based on qualitative and quantitative frameworks and tools
  • Identify the key factors that drive a company’s future performance and evaluate the likely impact on its credit standing
  • Use a cash flow approach to ascertain a company’s ability to service/refinance its debt as it comes due
  • Use appropriate market indicators, where available, to understand refinancing risk and the market view on a credit
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Course Content

Analytic Overview

Introduction of the four-step approach to any risk exposure: Purpose of transaction, sources of repayment, risks to repayment and structure of debt or exposure needed to safeguard repayment.

  • Application: Identify the true purpose of borrowing, the source(s) and risk of repayment, and the expected structure of the debt for several companies using company descriptions and key financials.
Macro Considerations

Macro risks in the operating environment, financial markets, and industrial sector a borrower operates in.

  • Location: Country risk and markets where a borrower raises funds
  • Sector: Competitive intensity of the sector(s) a borrower operates in; structure, key players, basis of competition, risk of new entrants, substitution and relative bargaining power of buyers and suppliers
  • Long-term growth potential and volatility of demand
  • Application: Illustration case study provided as pre-course material
  • Application: Identify asset configurations, funding structures and earnings of companies in different sectors
Management and Ownership

The role and strategy of the management team, and the influence and control of shareholders are assessed.

  • Management’s business and financial strategy and performance goals
  • Corporate governance and reporting structure
  • Group structure and shareholders
  • Quality of financial reporting
  • Application: Illustration case study provided as pre-course material
Business Profile

Understanding a company’s business strategy in the context of sector, country of operation and shareholder requirements.

  • Diversity of services/products, geographical end markets, customer and suppliers.
  • Competitive position: Product dominance and a company’s relative market position. Comparative size and possible operating efficiencies.
  • Sector-specific factors.
  • Application: Illustration case study provided as pre-course material.
Financial Profile – Cash Flow and Profitability

Assessment of the quality and stability of earnings and cash flows from operations needed to finance operations and capital investments (‘Business Risk’).

Earnings and cash flow
  • Internal and/or external factors impacting revenues and core profitability
  • Performance vs. the market and per division/geography
  • Application: Case study with exposure to FX and commodity prices
  • Impact on performance by non-operating items
  • Looking beyond EBITDA at sustainability of funds flow from core operation (e.g. funds from operations – before changes in working capital)
  • Application: Illustration case study using additional financial ratio and sector peer information
Asset investment and efficiency
  • Working capital management, cash conversion cycle and supplier finance
  • Application: Comparison of cash conversion of companies operating in the same sector
  • Cash flow impact of the company’s working capital management stability of cash flow from operations
  • Expansion or replacement asset investment in on-balance sheet fixed and intangible assets
  • Industry-specific utilization measures and off-balance sheet ‘assets’
  • Example(s)
  • Application: Illustration case study using additional financial ratio and sector peer information
Forecasting and sensitizing key cash flow drivers
  • Forecast operating performance and asset investment requirements using a basic Excel cash flow model calculation of present value of cash flow available for debt service.
  • Application: Illustration case study. Set scenarios to test the robustness of future cash generation and key vulnerabilities.
Financial Profile – Funding Structure and Financial Flexibility

Evaluation of the appropriateness of a company’s funding structure and ability to service its financial obligations (‘Financial Risk’).

Capital structure and funding instruments used
  • Financial discipline and dependency on external financing
  • Funding instruments used, tenor, currency of the debt and any off-balance sheet financial obligations
  • Financial leverage and comparison with the business risk from operations
  • Application: Illustration case study using additional financial ratio and sector peer information
Financial profile – financial flexibility
  • Debt service capability: Affordability of the level of debt – meeting interest and debt repayments obligations (debt service) from internally generated cash over the past years and based on future cash flow available for debt service
  • Application: Assessment of the capital structure and debt service capability for several companies operating in a similar sector
  • Debt capacity assessment: Present value of future cash available for debt service
  • Foreign exchange exposure, hedging strategies and potential impact on cash flow and debt servicing capability
  • Refinancing risk and liquidity: Ability to meet short-term financial obligations as they fall due from current operations
  • Application: Illustration case study using additional financial ratio and sector peer information
  • If time available: Fitch Ratings Corporate Navigator - interactive tool used in assessing an issuer default rating
Debt Structure

Overview of main elements of debt structures. 

  • Ranking: Different ways to achieve seniority or pari passu ranking vs. other capital providers
  • Safeguards: The use of financial and non-financial covenants to mitigate risk
  • Pricing fundamentals: Bond and loan prices
  • Market indicators of credit risk: Credit ratings, bond spreads vs. rating curves, share price
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Who Should Attend?

Are you a financial professional working in credit risk, asset investment or relationship management? Perhaps you assess counterparty risk from an underwriting point of view or trade debt exposure. Or you’re a regulator looking to understand the underlying credit assessments needed for the organisations you work with. Whatever your financial role, if you’re looking to build or boost your corporate credit analysis skills, this is the course for you. Please note, you need to be familiar with financial statements to take this course.

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Course Highlights

Real Case Studies

Real company case studies to test your newly learnt skills

CPD Recognized

This course is Continuous Professional Development (CPD) recognized

Highly Interactive

Highly interactive with small group size led by industry expert trainers

Frequently Asked Questions

Currently, course can be taken either in an in-person setting or in a live online setting.

Our virtual live online courses are designed to keep the same levels of engagement and networking as our in-person courses. You will attend the course virtually on a set date, at a set time.

What time zones do the courses run in?
Currently, we run live online training across London, New York and Singapore time zones.

How are the courses delivered?
We deliver virtual training via Zoom.

What are the start times?
The courses will run during scheduled class times, and vary per course.

Reclaiming VAT
Most delegates who attend our courses in the UK are able to claim back their VAT once it has been paid. The below information details why we need to charge VAT and how you can claim it back.

Why does Fitch Learning charge VAT?
The EU VAT Directive (Council Directive 2006/112/EC) article 53 says that for the right of entry to cultural, artistic, sporting, scientific, educational, entertainment or similar events in exchange for a ticket or payment, the place of supply is where the event physically takes place. Since, the event is held in the UK, the place of supply is the UK and therefore UK VAT has to be charged.

How can you claim back the VAT you paid for a course?
The most efficient way to claim back VAT is directly through the UK’s HM Revenue and Customs (HMRC) by completing the required forms and sending back to HMRC.

Please follow the links below for further details;

EU businesses
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To claim back VAT or if you have any questions please contact HMRC;

Telephone - 0044 (0) 3000 537 381

Email Overseas Repayment Unit - enq.oru.ni@hmrc.gsi.gov.uk

On the Fitch Learning website you will find learning paths which will explain the courses available at different levels within a topic area. We would always prefer to speak with you to discuss which course is most appropriate rather than run the risk of you signing up for an inappropriate course. If you are unsure, please contact the Public Courses team:

Phone: +44 20 7496 8600
Email: enquiry@fitchlearning.com

All of our instructors are industry practitioners turned trainers. Their training style is case study based and interactive. They will coach, challenge and inform participants to ensure immediate and practical real-life application from the courses. To discuss our instructors further please email enquiry@fitchlearning.com

Class sizes are dependent on the course, but are small enough to permit active interaction and participation.

Q. Am I able to gain CPD/CE/CPE credits for my course?
A. We award continuing professional development credits for the following:

Global
CFA Institute
The CPD Certificate Service
UK
CFA Society
The CPD Certificate Service

Q. What do I need to do to receive my credits?
A. Please email enquiry@fitchlearning.com to request a certificate. Fitch Learning will send you a certificate stating how many points you are eligible for.

Q. How many credits will I receive?
A. We award 8 credits (7 for the CFA) for each day of training you attend.

You will be contacted by email within 2 working days of processing your registration to confirm your place on the course.

In order to optimise class time we ask participants to read some background information on the main illustration case(s) prior to attending the class. This also helps to ensure that all are able to participate in case discussions. In some cases additional background reading is provided. The length of pre-course reading is advised to participants in advance and typically ranges from 2-3 hours.

We try to send out the pre-course reading by email one week before the start of the course. There may be a delay in sending this out due either to late registrations or to the fact that the case study needs to incorporate recently-published financial information.

Q. If I am unable to attend can I send a substitute?
A. Absolutely and it is completely free of charge. We do however ask that we have at least 2 working days’ notice of this change before the course start date. Please email enquiry@fitchlearning.com with full contact details of the substitute and who they are replacing.

Q. Can I transfer my booked course to another date?
A. Yes you can. If you email us your request to transfer to the next available course date and give us more than 30 days’ notice, there will be no charge. If you notify us within 30 days of the course start date, there will be an additional payment of 25% of the course fee, provided the original course fee has been paid in full.
A transfer can only be made onto a course taking place within a period of 6 months of the original course date and only one transfer can be made in respect of any booking.

Q. Can I cancel my course booking?
A. Yes. If you email us with your request more than 30 days before the course start date, there will be no charge. If you notify us within 30 days of the course start date you are liable for the full course fees.

Q. What happens if I do not attend my course?
A. If you do not attend your course and you do not give us any prior notice you are liable for the full course fee and no refunds can be given.

Notice contact details:
Email: enquiry@fitchlearning.com

We can develop a customized training solution to meet your learners' needs - at all levels in your organization. Please email enquiry@fitchlearning.com for more information.

Please get in touch with us via email at enquiry@fitchlearning.com to request more information on running one of our courses in-house for larger groups.

Discount offers cannot be used in conjunction with each other or any other offer nor applied retrospectively to anyone already registered for any Fitch Learning course.

To speak to a member of our team, please get in touch via the below:
Phone: +44 20 7496 8600
Email: enquiry@fitchlearning.com

Q. How do I make a complaint?
A. Anyone who wishes to make a complaint may do so in writing. Complaints need not be made to the actual service which is the subject of the complaint. In the first instance complaints should be sent to Grace Heighington, Head of Public Courses.

Q. Where do I send my complaint?
A. Complaints can be submitted using the following options:
Email: enquiry@fitchlearning.com
Post: Grace Heighington, Fitch Learning, The Corn Exchange, 55 Mark Lane, London, EC3R 7NE
Wherever possible and appropriate, staff are requested to elicit from the complainant the nature of the complaint, as well as the actions the complainant feels are necessary to resolve the complaint.

Complaints Policy and Procedure
Q. What are the stages involved?
A. There are two main stages to our complaints procedure:

Stage 1 - We always try to resolve issues quickly. From the moment we receive your complaint, we must get back to you within three working days. At the very least we must acknowledge the problem in writing and give you the name of the person dealing with the complaint. We must give you a full reply within ten working days if possible, or keep you fully informed of the progress and reasons for delay.

Stage 2 - If you are not happy with the full response at Stage 1, please contact us again. One of the Managing Directors will then review the issue. You can expect our acknowledgement within three working days of us receiving your complaint. We will also explain how long the director's review will take.

What Our Customers Say

"Excellent course, very well structured. Very knowledgeable trainer, great experience."

Kateryna Plinska, HSBC

"Extremely informative, with capable instructor and real life examples."

Hao Diep, Lloyds Banking Group

"Very informative and provided a comprehensive overview on credit analysis. The pace is good and the instructor is very knowledgeable.."

Belinda Liao, Fidelity International

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