What Does a GFMI Corporate Credit Analysis Course Cover?
Our Corporate Credit Analysis Course was designed to provide participants with an in-depth understanding of how assessments of a company’s credit are analyzed and the relative attractiveness of a borrower’s risk return profile.
By the end of this course, participants will be able to:
Identify and analyze the key components of credit analysis, including both the borrower and the instrument
Differentiate between the different types of credit risk, such as probability of default or downgrade, credit spread risk, and concentration risk
Calculate, critique, and interpret the key financial ratios used in credit analysis
Analyze how and why the cash flow from an operation is used to assess the ability of an issuer to service its debt obligations and to assess the financial flexibility of a company
Evaluate the various aspects of fundamental credit analysis for a corporate entity
Incorporate quantitative and qualitative factors in developing a sound credit rationale
Corporate Credit Analysis Course Requirements:
Prerequisites: Financial Statement Analysis
Program Level: Foundation
Advance Preparation: None
Recommended CPE Credits: 14
Corporate Credit Analysis Course Breakdown
This course is broken down into eight different sessions that span across two days.
In Session 1: Overview of Credit and Credit Analysis, the characteristics and importance of credit analysis will be covered. Participants will be exposed to the types of credit risk, the cyclical nature of credit, the need to form a macro view, and how to conduct industry and competitive analysis.
Session 2: Financial Statement Analysis will show participants the structure and uses of the key financial statements and how they are related. By this session’s conclusion, they will also understand the importance of normalizing and adjusting financials and applying the concept of working capital.
After Session 3: The Importance of Sustainable Cash Flow and Creative Accounting Practices, participants will be able to distinguish the difference between various definitions of free cash flow and will be able to discuss early warning signs in a firm’s financial statements.
Session 4 will cover the importance and limitations of ratio analysis. In this session, participants will not only learn about ratio analysis, but also about how to adjust the numbers before computing ratios and to contextualize them by comparing with peers.
In Session 5: Corporate Funding and Structuring, participants will learn how to distinguish between the equity markets and the credit markets as to how to value a firm. Funding sources and uses will be examined as a company’s capital is discussed. Weighted Average Cost of Capital implications (WACC), specifically, the tax benefits of debt, will be discussed.
Session 6: The Market View of Credit Risk will introduce participants to the different ways that a corporation can be analyzed. It will define Credit Default Swaps (CDS) – both single name and index contracts, and describe their corresponding markets.
By the conclusion of Session 7: Assessing Relative Value in Corporate Credit, participants will be able to interpret trends in corporate credit markets. How credit fundamentals will drive values will be covered as well as the usefulness of quantitative models.
In the final session of our Corporate Credit Analysis Course, Session 8: Develop and Defend a Credit Rationale, participants will thoroughly analyze the case company, then formulate and defend their analysis. An analysis of both the quantitative and qualitative factors will take place, as well as a discussion on how credit analysts form a rationale and what their results may be.
