Course aims

The overarching aim of the course is to make delegates step back from the detail of day-to-day ratio calculations and the administration of the details of credit to look at the broader macro, industrial and structural issues. All these considerations together contribute to a company’s credit profile and define the company’s ability to compete profitably – and so define its credit risk.

Over three days, we will review the core disciplines involved in corporate credit analysis – namely management and business risk analysis; understanding financial risk and leverage; understanding the impact of corporate structure and security on probability of default and recovery rates; the rating agency rating scales; and the impact of sovereign risk, parental support and liquidity analysis on the final rating. Delegates will carry out a series of analytical exercises and case studies and develop a rating of a listed but unrated case study company.


Course Objectives

At the end of the course, delegates will:

  • Have a clear structured, consistent analytical framework and set of analytical tools to apply to day-to-day corporate credit analysis;
  • Understand the importance of comparative strategy and business analysis;
  • Have a clear understanding of the importance of strategy in establishing the framework for credit quality and a strong understanding of the leading indicators of corporate failure;
  • Be able to effectively interface with management at investee companies and involve them in proactively and critically assessing management and the board’s composition and effectiveness; and
  • Be able to constructively participate in documentation and structuring dialog.



  • Credit analysts
  • Debt fund managers
  • Trainee bond and credit analysts
  • Investment professionals
  • Finance directors
  • New entrants
  • HR and training
  • Finance and accounting


Course Content

  • Strategy analysis – a framework and toolkit
  • Assessing management – what does good and bad management look like? How distinct are the challenges management face?
  • Ratio analysis – what core metrics drive ratings? What ratios give us insight into competitive strength?
  • Rating Agency methodologies – an overview, how can we replicate?
  • Financial metric normalisation – key adjustments for leases, pensions, JVs and associates
  • Corporate structure – subordination, security and other credit enhancements – what is their impact?
  • Covenants – who benefits from them? What are they worth in terms of improving recovery? Are all covenants equal in bonds and loans?
  • Liquidity benchmarking – a consistent and transparent approach to adjusting for liquidity