What is corporate credit analysis and why do banks do it?
• Categories and types of loans • The lending process • Sources of Information Industry and company forecasting • Industry analysis and trends • Industry metrics • Corporate analysis • Sensitivity and scenario analysis Financial analysis • Profitability and performance ratios • Liquidity and solvency ratios • Coverage ratios • Capital structure ratios • Corporate financing and credit ratios • Limitations of financial credit analysis Non-financial analysis • Industry and economic factors • Industry structure: Porter’s model • Key market forces: PEST • Corporate strategies and implementation • Corporate structure • SWOT analysis • Non-financial analysis Credit ratings and credit scoring • Role of credit rating agencies • Rating definitions, process and methodology • Credit scoring models
