Credit Risk Modeling & Analysis Mastery

This course equips learners with the analytical tools and modeling techniques necessary to assess, interpret, and manage corporate credit risk. Using real-world financial data from two companies, participants will explore the complete credit risk lifecycle—from fundamental financial statement analysis to advanced structural and market-based models such as the Altman Z-Score and Merton’s Model. Learners will develop the ability to calculate unlevered free cash flow (UFCE), assess working capital movements, and compare financial profiles using key evaluation metrics. Through this structured approach, participants will be able to synthesize financial findings, assign internal ratings, formulate risk-adjusted exit strategies, and present well-supported credit recommendations. The course emphasizes critical thinking and decision-making using Bloom’s Taxonomy levels including analyze, evaluate, and formulate, fostering applied proficiency in credit risk assessment and recommendation development.

This comprehensive course equips learners with the knowledge and practical tools to analyze, evaluate, and apply key credit risk modeling techniques used in modern financial institutions. Through a blend of theoretical frameworks and real-world case studies, learners will explore foundational concepts such as Probability of Default (PD), Loss Given Default (LGD), and Expected Loss (EL), progressing into structural models like Merton’s approach and market-based credit assessment methods. Participants will also construct and interpret Altman Z-scores to assess bankruptcy risk, and apply credit rating principles to real-world scenarios including airline industry case studies. The course further delves into corporate credit evaluation using internal financial metrics, unhedged foreign currency exposure (UFCE), and working capital analysis, concluding with internal rating systems and lender “ways out” strategies. Designed for aspiring risk analysts, finance professionals, and advanced students, this course combines instructional rigor with practical relevance, enabling learners to build, differentiate, and justify credit decisions with confidence.