Credit Risk Modeling & Analysis Mastery

Build advanced skills in credit risk modeling by learning how to analyze financial statements, evaluate corporate creditworthiness, and develop evidence-based credit recommendations. In this course, you will work with financial data from two companies to assess credit risk using both financial statement analysis and structural credit risk models. You will begin by analyzing income statements, balance sheets, and cash flow statements before comparing financial performance across companies. Next, you will apply the Altman Z-Score to assess bankruptcy risk and explore the Merton Model to evaluate market-based credit risk using asset volatility and distance to default. You will also construct unlevered free cash flow (UFCE) models, analyze working capital movements, and evaluate multi-year financial trends using key financial metrics. As you progress, you will integrate your analyses to assign internal credit ratings, formulate risk-adjusted exit strategies, and develop well-supported credit recommendations. Throughout the course, you will strengthen your ability to analyze, evaluate, synthesize, and formulate decisions using practical financial data. This course is ideal for learners seeking to deepen their knowledge of corporate credit analysis and advanced credit risk assessment. By the end of the course, you will be equipped to interpret financial information, apply established credit risk models, compare company credit profiles, and produce comprehensive, data-driven credit recommendations.

Build a strong foundation in credit risk modeling by learning how financial institutions analyze, evaluate, and manage credit risk. This course guides you through essential credit risk concepts, including Probability of Default (PD), Loss Given Default (LGD), Expected Loss (EL), structural credit risk models, and market-based approaches to credit assessment. You will apply Altman Z-score techniques to evaluate bankruptcy risk, interpret credit ratings and evaluation metrics, and analyze real-world airline industry case studies to understand how credit decisions are made in practice. As you progress, you will explore working capital modeling, unhedged foreign currency exposure (UFCE), financial statement analysis, internal rating systems, and lender "ways out" strategies used in institutional lending. Designed for aspiring risk analysts, finance professionals, banking practitioners, and advanced finance students, this course combines conceptual understanding with practical applications to help you assess borrower risk using established credit assessment techniques. What makes this course unique is its progression from core credit risk models to real-world industry applications and internal credit evaluation practices, enabling you to connect financial analysis with structured credit decision-making. Whether you want to strengthen your knowledge of credit risk analysis, improve your understanding of credit modeling, or build practical skills in financial risk assessment, this course provides a structured learning path grounded in industry-relevant methodologies.