Leading Excellence in Banking

ADVANCED CORPORATE CREDIT ANALYSIS

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Fitch Learning delivers learning and development solutions for the financial services industry. With centres in London, New York, Singapore, Dubai and Hong Kong; we are committed to questioning and understanding client needs across the globe and on the ground locally. Our people advise and build learning solutions to accelerate the achievements of the individual and the company, across the entire employee lifecycle.

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Partners

Angela Atherton, CFA, FRM

Training capability overviewAngela is a seasoned instructor leveraging her financial services experience to educate delegates. She has been teaching Fitch Learning’s tailored, professional qualification and short courses in Asia, the Middle East, Europe, Africa, and North America since 2006. Angela routinely covers the full breadth of Chartered Financial Analyst curriculum topics for exam preparation (Levels I, II and III) and in tailored courses for corporate/banking clients. Her course range includes: Financial Risk Management; Financial Modelling; Structured Finance & Securitization; Valuation; Financial Institution Analysis; Market & Macro Risk; Corporate Finance, Loans & Bonds; Intensive Bank Analysis, Corporate Credit Analysis; Financial Reporting; and Financial Instruments.

Training experienceAngela began instructing peers and clients on securitization and risk management in 2001 at Fannie Mae. She designed and implemented a one-month analyst and associates induction program that was recognized by the CEO as “the most comprehensive training program in the financial institution”. She expanded her scope of course offerings to cover a wide range of financial and risk management topics. Angela has taught corporate finance and security valuation courses at Georgetown University and for the University of Maryland System. Her energy, explanation of complex topics and real world examples engage delegates at all professional levels and yield strong client satisfaction.

Corporate/Banking experienceAngela started her career in investment banking, developing financial models to evaluate merger and acquisition prospects at American Capital Strategies. She led credit risk analysis and pricing for Fannie Mae’s $500 billion in annual securitization and on-balance sheet portfolio acquisitions. Angela served as the chief liaison among financial theorists, technologists and sales managers in communicating credit analytic methods and results. She was the head of risk management at the Calvert Foundation, an impact investing fund. Angela consults for the IFC/World Bank and USAID, working on their behalf with financial institutions, corporations and central banks around the globe.

Relevant qualifications Angela holds the Chartered Financial Analyst (CFA) and Financial Risk Manager (FRM) designations. She earned a Master of Science in Finance from George Washington University and a Bachelor of Arts in International Studies and Economics from American University. Angela serves as member of the Access Africa Fund Board of Managers.

ADVANCED CORPORATE CREDIT ANALYSISAre you an experienced financial professional looking to take your skills to an advanced level? Fitch Advanced Corporate Credit course will guide you through the credit process and provide you with practical advice on what to do if problems occur.

Objectives

The overall goal of this three day workshop is to enhance analytical skills, with a particular emphasis on quantitative analysis and cash flow analysis. Participants will be reminded of the structured and systematic approach to evaluate the credit standing of a company and assess the relative attractiveness of the risk-return profile of the investing/lending proposition. This is a highly interactive workshop where case studies and exercises are used to illustrate key learning points. A case study presentation will form part of the workshop allowing participants to apply the concepts acquired during the workshop to a real-life scenario. Participants are encouraged to be focused and concise in developing and articulating credit judgement.

Top three reasons to take the Corporate Credit Analysis course with Fitch Learning:

1. Highly interactive workshop to develop your critical judgement2. Includes case studies to help you become more effective in assessing the success of a company’s business model3. Run by financial professionals who have experience working in this area and can pass their real life expertise on to you

Instructors – You will be taught the subject matter and how to put the topics into context from experienced professionals who will provide easily digestible content using knowledge learned from many years in the industry.

Up-to-date Content – You will work through current, region-specific case studies taken from real companies so you can apply what you have learnt as soon as you get back to the office.

Interactive – You can practice what you learn before applying it in the workplace. The course is highly interactive with a maximum of 20 participants. The discursive style of training helps you develop confidence in your future decisions and analysis.

The workshop will enable participants to:

• Apply a structured approach to assess the creditworthiness of a borrower• Evaluate the performance of a company based on qualitative and quantitative frameworks and tools• Identify the key factors that drive a company’s future performance and evaluate the likely impact on its credit standing• Use a cash flow approach to ascertain a company’s ability to service/refinance its debt as it comes due• This course will have a strong emphasis on ratio and cash flow analysis

Why take this intensive course with Fitch Learning?

Content

1) Analytic Overview

The analytic tools and frameworks for credit analysis are explained and demonstrated through a wide variety of up to date examples, case studies and exercises.Introduce and reinforce a structured approach to the analysis of a transaction. Participants will evaluate business needs and focus on the key components of credit analysis: • Purpose: identify the borrower and use of funds • Payback: link credit assessment to primary and secondary sources of repayment • Risks to repayment: the need for sector and company analysis to evaluate debt servicing ability • Structure: assess the ability of the debt to meet the commercial needs of a company while protecting lenders’ interest • Exercise: Illustration case study which will be carried out at the end of each section to analyse the core approach of the true Purpose of borrowing, Payback, Risk of Repayment, and the expected Debt structure.

2) Risks to Repayment

Participants will be reminded, briefly, of the importance of Macro drivers and the behaviour and risk appetite of Management and Ownership. The course will then focus on Sector drivers of cash flow and balance sheet structure, and analysis of liquidity and solvency.

Earnings Dynamics

• Quality and stability of revenue and cash flow from core operations• Cost base analysis, profitability and cash flow measures • Peer and ratio analysis to evaluate performance • Different accounting conventions and misleading accounting practices • Exercise: comparing the income statement to the cash flow statement of a cyclical company, how the cash flow of a company in decline behaves over time, and sensitizing the Income Statement for key variables. Balance Sheet recognition – understanding the balance sheet outcomes of different sectors. Deriving a cash flow statement in the cases where the client does not produce a cash flow statement

Asset Management

• Asset conversion cycle, asset efficiency and investment needs • General and industry specific ratio and cash flow tools to analyse and compare asset efficiency• Exercise: identify 2 or 3 companies operating in the same industry but with different business models using key asset management ratios • Exercise: Compare the working capital ratios of 2 different companies to observe the difference between good and poor working capital management.• Illustration case study: using peer and ratio analysis to assess and compare asset management and effect on current and future cash-flow generation

Sector

• Sales growth, operating profit margin and working capital requirements• Capital expenditure and asset requirements• Competitive forces and critical success factors to sustain a competitive advantage• Exercise: Asset configurations, funding structures and earnings of companies in different sectors• Illustration case study: Key sector risks and critical success factors

Management and Shareholders

Review the strengths and weaknesses of management and the influence of company ownership: • Management performance • Corporate aims and goals and their effect on the company’s future • Shareholder structure, support and influence • Illustration case study: identify management strengths and weaknesses and shareholder structure / support.

Business Risk

Assess a company’s business strategy in order to understand the asset investment needs and commercial viability of a company and their effect on the quality and stability of cash flows

Business Strategy

• A company’s markets, products, services and competitive position• Corporate actions underpinning its growth strategy • Illustration case study: how well positioned is the company and to what extent does it address sector’s critical success factors

Cash Flow Drivers

• Forecast operating performance and asset investment requirements • Illustration case study: robustness of future cash generation and key vulnerabilities.

Financial Risk

Evaluate the appropriateness of a company’s funding structure given the operating environment, management and shareholder goals and overall business risk and an evaluation of its debt service ability and refinance risk.

Financial strategy

Corporate treasury objectives: • Risk appetite of capital providers • External rating maintenance • Tenor matching, funding and liquidity and refinancing needs • Alternative sources of funding: trade, bank debt, capital markets, structured finance, equity etc

Liquidity

• Financial flexibility: measuring liquidity or payment readiness• Funding instruments used by companies that can increase the refinancing risk and overall financial risk • Exercise: Calculating on-going liquidity and the difficulty around off-balance sheet liquidity issues • Forecasting a liquidity problem, and suggesting possible solutions. Digging through the notes to find hidden liquidity problems.

Workshop TimingsBelow are typical timings for our courses. Participants will be advised upon registration should the timings change.

• Breakfast: 8:00am

• Course Starts: 8:30am

• Course Ends: 4:30pm

• Lunch: Starts between 12:30pm and 1:30pm, and lasts no longer than 1 hour

• Short breaks: 10-15 minutes are taken mid-morning and mid-afternoon

Dates/PricesDATES DURATION LOCATION PRICE

9th – 11th of May 2017 3 Days BIBF BHD 950/-

3) Group Case Study

The course makes extensive use of case studies, live examples and exercises to ensure that the training is highly interactive, practical, topical and challenging. Case studies are drawn from a number of countries and industries and provide participants with the opportunity to practice the application of the analytic frameworks and tools in context of real situations. The emphasis is on developing critical judgement; participants are required to be focused, practical and realistic in their approach

The aim of this group case study is to allow participants to apply the framework and tools of credit analysis to a company and make a concise and conclusive presentation to the group on the final day of the course: • Preparation and presentation of a complete credit analysis and critique of a financing proposal in small groups of 2 to 5 participants • Companies used for the group case studies will be drawn from the regional markets

Solvency

• Funding structure including off balance sheet obligations • Debt servicing ability using cash flow analysis • Rating medians to evaluate a company’s financial standing• Exercise: Assess the degree of financial risk and debt servicing • Future cash available for debt service using a simple debt capacity cash-flow mode• Refinancing risk: debt capacity vs. borrowing capacity • Exercise: Using traditional leverage ratios and comparing their effectiveness to cash flow ratios • Illustration case study: Measuring the affordability of debt, from the debt service viewpoint and the ability to repay debt

Note: This course utilises financial modeling exercises. Participants would need to bring their own laptops with Excel installed.

ADVANCED CORPORATE CREDIT ANALYSIS

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TERMS & CONDITIONS:

1. BIBF offers courses on the basis that there will be sufficient students to justify running it or else the course will be cancelled.2. BIBF may modify the dates or cancel the course should any unexpected/unavoidable circumstances arise. BIBF’s liability in the event of any modification or cancellation will be limited to cover the fully paid course fees.3. In the event of cancellation of the course, BIBF will refund the amount paid in full by the student for the course. If the course is postponed by BIBF, the students have the option to ask for a refund.4. Students should attend the full duration of the course as scheduled and strictly abide with the stated course timings. In the event of a student attending less than 80% or the total course hours, the student will be withdrawn from the course, marked as a “Drop Out”, and requested to re- register. 5. Course deferral requests should be made by a student in writing one week prior to the course commencement date. No deferral requests will be entertained thereafter. Fees can be deferred for one session only, and course fees paid will not be refunded. Students are not allowed to attend a different course/subject for an approved deferral request.6. Students may withdraw from their course by giving a written notice of not less than one week prior to the commencement date. The refund policy of the Centre will apply.

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Leading Excellence in Banking

For further information, and to register:Please contact the Centre for Banking

+973 1781 5555 / 5523

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