Overview
Participants will use a systematic approach to evaluate the credit standing of a company and assess the relative attractiveness of the risk-return profile of the investing / lending proposition.
- Define corporate credit analysis and contrast with equity analysis
- List the benefits of corporate credit analysis
- Types of risk: business vs. financial
- Define the stages of the industry/product life cycle
- Recognize industry metrics used to analyze performance and trends
- Define and calculate the different types of ratios used for credit analysis
- Explain what the different ratios tell us from a credit analysis perspective
- Recognize the factors that go into determining a company’s optimal capital structure
- Recognize the limitations of financial information in credit analysis
- Define the five forces in the Porter model
- Identify the different corporate structure issues and their implications for credit analysis
- Describe SWOT analysis
- Describe the role of rating agencies in credit analysis
- Identify the process that rating agencies use to rate companies