Corporate Credit Rating Analysis
| Course Provider |  |
| Dates Duration | 22 - 23 November 2 Days |
| Venue | Clarion Hotel, IFSC, Dublin |
| Course Fees | Full Fee: €1400 Network Members Fee: €900 |
Overview
This seminar provides delegates with an in depth understanding of the rating practices employed by Moody's Investors Service for assessing corporate credit risk - from rating methodologies and financial ratios to a rating committee simulation. Designed as an intermediate level course, the underlying goal is to improve delegates' use and interpretation of ratings in their day-today work.
Learning Objectives
Upon completion of this seminar, delegates will be able to:
- gain insight into the credit rating process of Moody's Investors Service
- apply a structured approach to corporate credit assessment
- calculate and interpret key financial ratios used in the credit rating process
- understand the concepts behind alternative measures of risk, such as market implied signals, and their use in credit analysis
Who Should Attend
- Credit analysts
- Ratings advisors
- Investment and commercial bankers
- Fixed income professionals (both buy and sell sides)
- Portfolio/asset/fund managers
- Equity analysts
- M&A professionals
- Banking supervisors
- Credit risk professionals
- Basel II project managers
Program Level
Program Level: Overview
Prerequisites: Two years experience in a credit-related function or attendance
at the Fundamentals of Corporate Credit seminar
Advanced Preparation: Research documents relating to the case study will be distributed before the course
Delivery Method: Group-Live
Course Outline
DAY ONE
Session 1: Understanding & Using Credit Ratings
Concepts of probability of default, loss given default, and expected loss
Default and recovery statistics
Group exercises/discussions
Session 2: Industry Analysis & the Credit Rating Process
Introduction to Moody's rating methodology for selected industries
The credit rating process
Group exercise/discussion
Session 3: Cash Flow & Financial Ratio Analysis
Financial statement adjustments
Key cash flow concepts explained
Key financial ratios used in the ratings process
Treatment of off-balance sheet items
Group exercise/corporate examples
DAY TWO
Session 4: Comprehensive Industry Case Study
Identification of industry and credit drivers; SWOT analysis
Financial ratios calculation and interpretation
Session 5: Analyzing Corporate Groups
Consolidated statements and their pitfalls
Group structures and support mechanisms
Principles of Moody's Joint Default Analysis
Group exercises
DAY THREE
Session 6: Assessing Liquidity & Alternate Liquidity
Liquidity risk and alternate liquidity
Rating triggers
Group exercise/corporate examples
Session 7: Introduction to Moody's Notching Principles for Corporates
Moody's Expected Loss Framework explained
Notching Principles for investment grade rated corporates
Overview of Moody's new methodology for deriving LGD Assessments and instrument ratings
Introduction to Moody's Expected Loss Framework
Discussion/corporate examples
Session 8: Analyzing Hybrid Financial Instruments
Moody's tool kit for assessing and rating hybrid financial instruments
Group exercise
Session 9: Moody's Ratings and Other Credit Risk Assessment Tools
Overview of Moody’s Market Implied Ratings
Overview of structural versus statistical models
Discussion/corporate examples