The aim of this course is to teach delegates how to analyse corporate credit risk and how to assess and evaluate the financial performance of the company from lender’s perspective.

How will this course assist you?

Through case study analysis you will learn how to thoroughly analyse the credit worthiness of the company to make sound lending decision.

Who Should Attend?

• Bank credit officers
• Corporate Credit Controllers
• Investment bankers
• Management consultants
• Bond credit analysts
• Fixed income/credit traders
• Fixed income/credit sales people
• Fund managers
• Treasurers
• Financial decision makers in corporations

Course Agenda

Types of lending and credit ratings

• The lending markets & environment in UAE
• Lending practices in UAE by banks & other financial institutions

Introduction to Corporate Credit ratings

• Rating scales and definitions
• Relevance of sovereign ratings
• Advantages & limitations of the rating agencies

Assessment of financial risks – Lender’s perspective

• Understand the Business Model
• 5 Cs of credit and their application

Financial Analysis

• Profitability
• Liquidity
• Solvency
• Debt service coverage
• Leverage
• Analysing the Income Statement
• Understanding the sources and sustainability of revenues & earnings 
• Identify the Revenue Drill Down questions to be asked by a credit analyst while analyzing the company revenues
• How to analyse the trend operating profitability
• Profitability ratios and their interpretation from lender’s perspective
• The cash flow statement: operations, WC, investment & financing
• Analysis of Balance Sheet
• Off-balance sheet financing
• Understanding the concept of finance lease & operating lease and its relevance while assessing the repayment capacity of a corporate borrower

The above concepts will be supported by real life case studies and examples.

Banking Products in UAE

How to assess the risk involved in the major credit facility of a corporate borrower with particular reference to the following:

• Letter of Credit
• Trust Receipts
• Local Bills Discounting (LBD)
• Invoice Discounting (ID)
• Guarantees (PB, BB, APG, RMG, MG etc)

Specialized Credit Analysis

Contracting Companies

• Understanding of project risk and reward based on financial parameters
• How to make the project cash flow statement to justify the credit limit requirement?
• Analysing the key risks involved in project financing; mainly covering
  • Performance risk
  • Payment risk
  • Legal risk (particular to the agreement of project)

Manufacturing Companies

• Understanding of credit limit requirement of a capital intensive manufacturing company
• How to parameterize the lending requirement taking into consideration the business model of the company i.e. whether it needs import line, local LCs, receivable financing etc.
• Key risks involved in lending to start-up ventures of manufacturing companies.

Cross Border Financing

Analysing the credit request for cross border transactions taking into consideration the performance/execution risk, foreign exchange risk & political risk

Projections & Forecasting

How to prepare the projected financial statements
Cash flow forecasting to predict the going concern continuity of the company

Corporate Credit Application process

Credit Application

• What are the main areas of Corporate Credit Application
• How to build a corporate credit case for approval
• How to prepare the business forecast analysis
• How to impose financial covenants and conditions
• Introduction to Risk Based Pricing

Post Approval Actions

• How to get the timely activation of credit limits to start the income for the bank

Early Warning Signals

• What are the early warning signals through which you can judge that company is showing signs of delinquencies?
• How to restructure a credit facility?
• How analyse a sick corporate unit for rehabilitation

Training Duration

12 hours split into suitable sessions of 3 hours each or 12 hours session split in to two days.

Training Fee

AED 7,500/- per participant

Training Venue 

Training will be conducted at dedicated training suite of Lynchpin Financial Training Centre, Knowledge Village, Dubai. Training can also be provided in-house at your desired location.

Course Participation Certificate

A course participation certificate will be provided to each participant after successful completion of the course.