Corporate Credit Risk: Modelling and Stress Testing a Corporate Credit Risk Model

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The “Corporate Credit Risk” course extend the focus of analysis to large enterprises with complex capital structures and multi divisional operations.

Participants will be able to analyse and apply corporate credit rating methodologies using qualitative and quantitate approaches to estimate credit ratings for debt issuance or syndicated lending.

Participants will gain an in depth knowledge of cash flow analysis, debt seniority and subordination, a strong emphasis is placed on the identification and consistent analysis of sustainable and recurring cash flows using reported financial statements.

Suitability

This is a foundation course for graduate entrants with a basic knowledge of accounting and financial model building.

Learning Outcomes

At the end of this course, participants will be able to:

Apply a rating agency ratings qualitative analysis methodology to a constructed Corporate Credit Risk Model
Calculate rating agency-defined measures of cash flow and interest coverage
Calculate metrics for liquidity, solvency and net worth
Analyse and build covenant compliance checkers with regard to debt seniority and subordination

Course Content

A review of forecasting best practices
Best practices for modelling sensitivities
Best practices for debt amortisation
Adjusting reported financial data for rating purposes including:
- Leased assets
- Off balance sheet finance
- Payables securitisation
- Exceptional items
- Goodwill and intangible assets
- Cost capitalisation
- Unfunded healthcare or pension liabilities
- Common pitfalls and how to avoid them
- Building bespoke credit metric add-ons
- Financial ratios
- Covenant checkers
- Valuation metrics

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of our clients would recommend Alpha to a colleague or peer

90%

of a cohort was promoted within 2 years after participating in an Alpha course.

96%

of participants felt more confident in their role, following an Alpha commercial leadership course.

Why study with Alpha?

Innovation and creativity born from experience

We are thought leaders in instructional and learning journey design and holistic solution architects. We have extensive finance and investments experience combined with skills application to deliver performance improving results. We develop immersive learning environments that maximize time to productivity, support talent retention and added value to improving quality of hires.

Knowledge Exchange Evangelists

We are focused on mining the embedded organisational intellectual capital for the benefit of the next generation. We create and curate best in class practice gathered from our experience with the leading financial institutions. We design our programmes with the end in mind – what results are you trying to achieve with this intervention? What metrics will we set ourselves to achieve that?

Generation Proof

Quality and innovation, using current market and industry best practices, have made us a trusted partner in delivering dynamic and motivating training for the financial and capital markets. Our programmes are generation proof and responsive to evolving learner needs and styles. Our solutions use a multi-stakeholder engagement strategy that expands beyond relationships between the learner and learning provider. We create connections with managers, peers and the wider business to drive impactful return on investment..

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