Credit Research Analysis and Credit Ratings for Beginners

Name: Credit Research Analysis and Credit Ratings for Beginners
Rating: 4.3 (21 reviews)

Credit Research | Credit Ratings | Credit Models | Credit worthiness of a company | and many more

Created byEDUCBA Bridging the Gap

Last updated 10/2023

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What you'll learn

This course on Credit Research involves assessment of credit worthiness of a company.
This course will equip the participants in forecasting future financial position of the company using spreadsheet, determining the outstanding debt position
This course will teach risk factor involved and finally giving a rating to the firm based on various financial and non-financial indicators.
Fundamental analysis involving sector overview and historical analysis
Understanding of all the important terms and concepts of Credit Research

Course content

5 sections • 17 lectures • 1h 44m total length

Introduction to Credit Research5:05
Explore the concept and process of credit research, including credit analysis, modeling, and ratings methodology to assess a borrower's ability to honor obligations.
Introduction to Credit Research Process3:27
Learn the credit research process from the issuer's formal request to rating, information gathering, plant visits, findings presentation, reading committee decisions, and ongoing monitoring.
Credit Research Process Steps5:47
Understand the credit research process from obtaining issuer information and conducting plant visits and management interviews to presenting findings, rating committee decisions, communicating results, and ongoing monitoring for changes.

Credit Rating Agencies6:14
Explore how credit rating agencies shape bond ratings and investor decisions, highlighting Moody's, Fitch, S&P, and Dun & Bradstreet, plus Indian firms like Care Ratings and CIBIL.
Functions of Credit Rating Agencies3:51
Provide unbiased opinions on debt obligations by gathering, analyzing, interpreting, and summarizing information to deliver quality, dependable, low-cost, and easy-to-understand credit risk assessments for investors.
Types of Credit Ratings8:32
Explore the three traditional credit rating types: sovereign, short-term, and corporate, and understand letter grades, international agencies like Moody's, S&P, Fitch, and India symbols.
Advantages of Credit Rating8:12
Explore the advantages of credit rating for investors, including safety of investments, recognition of risk and return, independent decisions, wider investment choices, and continuous monitoring.
Disadvantages of Credit Rating3:17
learn the disadvantages of credit rating, including non-disclosure of significant information and the static nature of ratings. ratings are not a certificate of soundness and may reflect bias.
Regulations for Credit Rating Agencies2:45
Explore SEBI regulations for credit rating agencies (1999), including promoter eligibility, minimum net worth, conflict of interest rules, and penalties like suspension or cancellation of registration.

Kmv Model3:28
Trace Moody's Analytics' origin and explore credit models that measure credit risk using the CMV approach, focusing on asset value, asset volatility, distance to default, and the expected default frequency.
Approaches Under Kmv Model8:28
Apply the KMV model to value assets and asset volatility using leverage and debt structure, then compute distance to default via the default point and map to expected default frequency.
Altman Z-Score Model5:51
Learn the Altman Z-score model for predicting bankruptcy within two years, which distills five key ratios into a single credit strength score.
Calculation Of Altman Z-Score Model4:58
Explains how to calculate the Altman z-score using assets-based ratios and betas, interprets the result with default, zone of ignorance, and no-default zones, and demonstrates sumproduct and vlookup.

Evaluation Criteria Of Banks7:06
Banks evaluate loan applications using the five Cs of credit analysis to assess repayment capacity and security. They consider capital and conditions to judge loan viability and influence interest rates.
Role In Modern Financial System - Introduction8:35
Explore the role of regulators in credit rating in India, from Sebi's evolving oversight to Basel II's impact on bank capital and internal rating approaches.
Role In Modern Financial System - Factors7:09
Learn how credit research links risk and return through rating agencies, guiding investors through business, money, and payment risks in the modern Indian financial system.

Requirements

Basic Finance knowledge will be helpful

Description

Understand Credit analysis process for various sectors like real estate, manufacturing, Construction etc. also learn the Credit report writing techniques. Get access to Credit analysis model. This course on Credit Research Analysis involves assessment of credit worthiness of a company. This course will equip the participants in forecasting future financial position of the company using spreadsheet, determining the outstanding debt position, the degree of risk factor involved and finally giving a rating to the firm based on various financial and non-financial indicators.

The extensive tutorials would equip the participants with the following:

Fundamental analysis involving sector overview and historical analysis
Understanding of all the important terms and concepts of Credit Research

At the end of this course the participants would be proficient in credit research analysis, provide a credit rating to a company using different ratios.

When an individual or any firm needs money, it approaches the lender whose job is to examine whether lending money to that borrower will be safe, i.e., whether the borrower will be able to repay the money or go bankrupt. So, the professional performing this analysis activity is called a credit research analyst. In technical terms, a credit research analyst is a finance professional proficient in evaluating an individual’s or business’s creditworthiness. Based on the borrower’s financial history and current situation, a credit research analyst determines the likelihood that a borrower will be able to meet the financial obligations and repay the loan.

Credit analyst performs fundamental credit analysis in a corporate bond, fixed income, and many others. This involves analysis of financial statements and industry overviews. An analyst also provides critical support to portfolio managers. He has to search and collect material, create financial models, and also perform relative value analysis.
They have to handle relationships with traders, investors, salespeople, etc.
Overall, they undertake the risk assessment analysis of lending proposals.
The role of credit research analyst/credit research analyst evolved around risk management, where he has to understand the risks and find out the ways to overcome these risks.
Credit research analyst/credit research analyst jobs are also expected to remain informed about legal activities.

Who this course is for:

Financial Risk Managers
Credit Managers/Credit Analyst
Credit Portfolio Managers
Asset Managers
Investment professionals
Students who want to pursue their career in any of the above fields

Credit Research Analysis and Credit Ratings for Beginners

What you'll learn

Explore related topics

Course content

Credit Research - Introduction3 lectures • 14min

Credit Research Methodology1 lecture • 11min

Credit Rating Agencies6 lectures • 33min

Credit Models4 lectures • 23min

Credit Rating Evaluation By Banks3 lectures • 23min

Requirements

Description

Who this course is for: