Corporate Credit Rating Analysis

This two-day practical course is designed to furnish participants with the necessary tools  to undertake comprehensive analysis in order to arrive at a comparative credit rating. It will focus on large corporates but the techniques can also be applied in whole or part to the analysis of mid-sized corporates.

The course starts by looking at the main credit rating agencies, and the significance and potential impact of rating scores.

The IRB models used by banks under the Basel guidelines, are based upon the credit rating models of the rating agencies. Consequently, the course then goes on to look at the credit analysis process, using the analytical framework adopted by the main agencies in arriving at their final credit conclusions and rating.

The course is highly interactive involving numerous exercises and short case studies. In addition, their will be one main case study that participants will systematically work through in order to arrive at a final rating.

• The Rating Agencies -the big three and other nationally recognised statistical ratings agencies
• Rating Agency analytical models
• Rating agency ratings v bank internal ratings
• Issuer ratings v instrument ratings
• What can trigger rating changes
• Country and Industry risk analysis (CICRA rating)
• Competitive Analysis
• Key ratios that drive rating scores
• Capital structure analysis
• Hybrid instruments – accounting v rating agency treatment
• Portfolio analysis
• Cash flow and liquidity analysis
• The impact of ESG factors
• The assessment of management
• Analysing the exposure to and the management of market risk
• The impact of structuring, subordination and credit enhancement tools
• Market trends