Contact Us

Please contact us today to discuss the best programme which can help you achieve your objectives.

City Training UK
100 Pall Mall
Saint James
London SW1Y 5NQ
United Kingdom

+44 (0) 203 815 6530

About Us

City Training is a world leading provider of premium public courses, in-house training and courses for universities and schools.

City Training was founded and is currently managed by several ex-investment bankers who are trainers themselves and passionate about training. 

Read more…

canstockphoto13426379

Credit Analysis

Thursday 25 – Friday 26 January 2018
Price: £1,520 + VAT
Registration close on Friday 19 January 2018

At the end of the training, through a mix of lectures and interactive case studies, participants will be able to perform a detailed credit analysis, including analysing market and environment, computing key financial ratios, interpreting cash flows and analysing financing needs.

Key Topics

  • Financial needs and the business operating cycle
  • Review of financial statements
  • Financial ratio analysis
  • Corporate cash flow analysis
  • Cash flow projections for debt service
  • Key lending policy guidelines 

Who Should Attend?

  • Credit analysts in Corporate Banking
  • Credit analysts in SME retail banking
  • Credit managers in corporations
  • Factoring professionals
  • Debt Capital Markets in Investment Banks
  • Fixed Income Equity Research
  • Fixed Income Investment Management
  • All other interested Finance professionals.

Jean has 10 years of experience in accounting and credit analysis.

Jean began his career at KPMG in Luxembourg, auditing and preparing financial statement for mainly bank and insurance clients.

Jean then continued his career as a Credit Analyst at Societe Generale in Belgium, where he conducted credit analyses for short and long-term credits and participations in loan syndications.

Jean has an engineering undergraduate degree from Solvay in Belgium and is a fully-qualified accountant in Luxembourg.

Session 1

Introduction and Overview: What is Credit?

  • Risks defined
  • What is the role of the credit analyst?
  • The Principles of good lending
  • The key analysis tools
  • Sources of information

Session 2

A Common Approach to Analysing Credit

  • What are the objectives and general characteristics of an effective credit risk rating system
  • The building blocks
  • The structured framework of credit analysis
  • Assessing performance
  • Understanding and evaluating Business Risk:
    • Macro (sovereign and country)
    • Micro (industry)
    • Management
  • Industry life-cycle

Session 3

Financial Needs and the Business Operating Cycle

  • Financial risk
  • Banks and banking:
    • Types of banks
    • Types of loans
  • Business needs
  • Corporate operating cycle and financing

Session 4

A Focus on the Financial Statements

  • Principles of Accounting
  • Understanding the financial statements:
    • Type of information
    • Key issues
    • Consolidation rules

Session 5

Financial Ratio Analysis

  • Types of financial ratios:
    • Business efficiency
    • Profitability
    • Financial
    • DuPont analysis
    • Other ratios
  • Liquidity vs. Solvency
  • Seasonality and management of working capital and the implications on financing
  • Interpretation and application of results
    • Limitations of ratio analysis
  • Insights

Session 6

Creative Accounting

  • Revenue recognition
  • Cost recognition
  • Warning signs

Session 7

Corporate Cash Flow Analysis

  • Statement of Cash Flow (construction and analysis)
    • Key issues to consider
    • The cash cycle
  • The Statement of Cash Flow:
    • Methods of Cash Flow presentation and construction
    • Traditional (CFO, CFI, CFF)
    • Manual (Direct and Indirect)
    • Rating agency derived (FCF)
  • Indentifying the 7 drivers of cash flow
  • Cash Flow Available for Debt Service (“CADS”)
    • Debt Capacity
  • EBITDA

Session 8

Financial Projections

  • Models (what we really want to know is what happens next)

o      Projection methodology

  • Short and Medium/Long-term

o      Projections

o      Judgments

  • Management influence
  • Projection problems

Session 9

Structural Risk Analysis

  • Myths, realities, opportunities and threats
  • The optimal debt structure
  • Factors influencing the choice of debt or equity
  • Structuring principles and issues:
  • Structuring a transaction
  • Facility type
    • Seniority
    • Security
    • Covenants
      • Affirmative
      • Negative
    • Structural mitigants
    • Control provisions
      • What does the Lender want?
      • What does the Borrower want?

Session 10

Credit Risk Lending Policy Guidelines

  • Credit Analysis format
    • How to put together a credit analysis – methods of presentation
    • Participants to discuss and come to a conclusion about the best method of presenting information in a standardised format throughout the bank
    • A study of the bank’s own guidelines will take place enabling participants to reconcile what they have learnt to the banks own practices (this may involve a senior in-house speaker)

Please contact us today to discuss the best programme which can help you achieve your objectives.

City Training UK
100 Pall Mall
Saint James
London SW1Y 5NQ
United Kingdom
+44 (0) 203 815 6530