Credit Risk Modeling - Build Credit Risk Model from Scratch

This comprehensive course provides in-depth training in financial statement analysis and credit risk modeling, utilizing real-world company case studies. Learn to derive and interpret financial statements, apply industry-standard models, and evaluate a company's financial health.

• Master Financial Statement Derivation: Gain hands-on experience dissecting income statements, balance sheets, and cash flow statements through detailed analysis of Company A and Company B. Understand how to read and interpret financial data to assess company performance.
• Credit Risk Modeling Techniques: Explore and apply powerful credit risk models, including the Altman Z-Score Model for predicting financial distress and bankruptcy. Learn how to assess a company's risk of insolvency.
• Merton's Model & Stock Price Analysis: Delve into Merton's Model for advanced credit risk analysis, examining the relationship between stock prices and balance sheet data. Understand cumulative credit analysis for a more holistic view.
• Unlevered Free Cash Flow to Equity (UFCE) Modeling: Learn to calculate and utilize UFCE to understand free cash flow dynamics in valuation and credit risk assessment. Gain practical experience in financial modeling.
• Working Capital Analysis: Analyze working capital structures of Company A and Company B to assess liquidity and operational efficiency, critical components of financial health.
• In-Depth Financial Statement Analysis: Conduct thorough financial statement analysis on both companies, identifying strengths, weaknesses, and key financial ratios to draw meaningful conclusions.
• Evaluation Metrics for Credit Risk: Understand and apply various evaluation metrics used in credit risk analysis. Learn to compare companies and assess the impact of market factors.
• Way Out Analysis & Internal Rating: Explore Way Out Analysis to understand potential exit strategies for companies facing financial distress. Learn about internal rating analysis and how companies are evaluated for creditworthiness.
• Final Financial Recommendation: Synthesize all learned concepts to provide a data-driven recommendation on the financial health and credit risk of Company A and Company B.

Course Structure:

• Introduction: Course objectives and structure, laying the groundwork for financial statement and credit risk analysis.
• Company Case Studies: Real-world examples using Company A and Company B to illustrate concepts.
• Comprehensive Financial Health Assessment: Develop the skills to assess a company’s financial stability and risk profile.

Conclusion:

By completing this course, you'll possess the theoretical knowledge and practical skills to excel in finance, accounting, and investment analysis. Become proficient in financial statement analysis, credit risk modeling, and making informed financial decisions.