Fundamentals of Credit Analysis

Overview

This course provides a structured introduction to evaluating credit quality in corporate issuers. Learners examine credit risk fundamentals, the role of credit ratings, the “4 Cs” of credit analysis, and key financial ratios used to assess borrower risk and bond pricing. Through practical examples, participants learn how analysts interpret credit metrics to inform lending, investment, and risk management decisions. Designed for professionals across front, middle, and back-office functions—or those aspiring to such roles—this course benefits individuals in lending, fixed income investment, operations, or risk assessment. No prior credit analysis experience is required; the program builds from foundational concepts to applied analytical techniques. By the end, learners will be able to explain credit risk, analyze financial statements, interpret credit ratings, and compare bonds by credit quality—skills essential for informed decision-making in diverse market conditions.

Syllabus

Fundamentals of Credit Analysis

In this module, you’ll learn the foundations of credit analysis, including how credit risk fits within overall investment risk and how bonds are priced. You’ll explore the four Cs of credit analysis—capacity, collateral, covenants, and character—to assess borrower quality and repayment likelihood. Through practical examples and clear frameworks, you’ll gain the skills to evaluate issuers, understand bond valuation, and make informed credit decisions.

Credit Risk Assessment and Financial Analysis

In this module, you’ll learn how to assess creditworthiness by evaluating financial statements, analyzing key ratios, and interpreting credit ratings. You’ll explore how assets, liabilities, profitability, and cash flow sustainability inform credit risk. You’ll also master the use of leverage, coverage, and profitability ratios, and understand the methodologies behind credit ratings, default probabilities, and loss recovery. Through expert-led videos, practical exercises, and real-world case studies, you’ll develop the skills to conduct thorough financial and credit analysis, enabling sound lending and investment decisions.