Leading Excellence in Banking

ADVANCED CORPORATE CREDIT ANALYSIS

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Fitch Learning delivers learning and development solutions for the financial services industry. With centres in London, New York, Singapore, Dubai and Hong Kong; we are committed to questioning and understanding client needs across the globe and on the ground locally. Our people advise and build learning solutions to accelerate the achievements of the individual and the company, across the entire employee lifecycle.

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With centers in London, New York, Singapore, Dubai and Hong Kong; we are committed to questioning and understanding client needs across the globe and on the ground locally. Our people advise and build learning solutions to accelerate the achievements of the individual and the company, across the entire employee lifecycle.

Trainer Biography:

Before joining Fitch Learning, Yuen-Wei's banking experience was gained in London, New York and Sydney working in credit risk management for Lehman Brothers and CS First Boston, and at JPMorgan Chase (Chemical Bank), where he was also credit trained. Yuen-Wei also worked in fund management at Gordian Knot, where he was Head of Credit Research for a large fixed income fund.

Yuen-Wei has extensive corporate credit training experience, acquired by training for clients in the Middle East, Eastern and Western Europe. His course range includes: Corporate Credit Analysis, Capital Structures and Debt Products, Warning Signals and Lessons Learned in Corporate Credit, and Structuring Funding Solutions.

Yuen-Wei has been teaching Fitch Learning's public corporate credit courses in Dubai, London, New York and Frankfurt. Many of his courses form part of a training curriculum especially designed for the client reflecting the regional market and client base with their roles including both client-facing RM, credit and risk officers. He is based in London.

For more information visit: www.fitchlearning.com

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Yuen-Wei Chew

ADVANCED CORPORATE CREDIT ANALYSIS

Are you an experienced financial professional looking to take your skills to an advanced level? Fitch Advanced Corporate Credit course will guide you through the credit process and provide you with practical advice on what to do if problems occur.

Top three reasons to take the Corporate Credit Analysis course with Fitch Learning:

1. Highly interactive workshop to develop your critical judgement2. Includes case studies to help you become more effective in assessing the success of a company’s business model3. Run by financial professionals who have experience working in this area and can pass their real life expertise on to you

Instructors – You will be taught the subject matter and how to put the topics into context from experienced professionals who will provide easily digestible content using knowledge learned from many years in the industry.

Up-to-date Content – You will work through current, region-specific case studies taken from real companies so you can apply what you have learnt as soon as you get back to the office.

Interactive – You can practice what you learn before applying it in the workplace. The course is highly interactive with a maximum of 16 participants. The discursive style of training helps you develop confidence in your future decisions and analysis.

Objectives

The overall goal of this three day workshop is to enhance analytical skills, with a particular emphasis on quantitative analysis and cash flow analysis. Participants will be reminded of the structured and systematic approach to evaluate the credit standing of a company and assess the relative attractiveness of the risk-return profile of the investing/lending proposition. This is a highly interactive workshop where case studies and exercises are used to illustrate key learning points. A case study presentation will form part of the workshop allowing participants to apply the concepts acquired during the workshop to a real-life scenario. Participants are encouraged to be focused and concise in developing and articulating credit judgement.

Why take this intensive course with Fitch Learning?

The workshop will enable participants to:

• Apply a structured approach to assess the creditworthiness of a borrower• Evaluate the performance of a company based on qualitative and quantitative frameworks and tools• Identify the key factors that drive a company’s future performance and evaluate the likely impact on its credit standing• Use a cash flow approach to ascertain a company’s ability to service/refinance its debt as it comes due• This course will have a strong emphasis on ratio and cash flow analysis

ContentThe analytic tools and frameworks for credit analysis are explained and demonstrated through a wide variety of up to date examples, case studies and exercises.

1) Analytic Overview

The analytic tools and frameworks for credit analysis are explained and demonstrated through a wide variety of up to date examples, case studies and exercises.Introduce and reinforce a structured approach to the analysis of a transaction. Participants will evaluate business needs and focus on the key components of credit analysis: • Purpose: identify the borrower and use of funds • Payback: link credit assessment to primary and secondary sources of repayment • Risks to repayment: the need for sector and company analysis to evaluate debt servicing ability • Structure: assess the ability of the debt to meet the commercial needs of a company while protecting lenders’ interest • Exercise: Illustration case study which will be carried out at the end of each section to analyze the core approach of the true Purpose of borrowing, Payback, Risk of Repayment, and the expected Debt structure.

2) Risks to Repayment

Participants will be reminded, briefly, of the importance of Macro drivers and the behaviour and risk appetite of Management and Ownership. The course will then focus on Sector drivers of cash flow and balance sheet structure, and analysis of liquidity and solvency.

Earnings Dynamics

o Quality and stability of revenue and cash flow from core operationso Cost base analysis, profitability and cash flow measures o Peer and ratio analysis to evaluate performance o Different accounting conventions and misleading accounting practices o Exercise: comparing the income statement to the cash flow statement of a cyclical company, how the cash flow of a company in decline behaves over time, and sensitizing the Income Statement for key variables. Balance Sheet recognition – understanding the balance sheet outcomes of different sectors. Deriving a cash flow statement in the cases where the client does not produce a cash flow statement

Asset Management

o Asset conversion cycle, asset efficiency and investment needs o General and industry specific ratio and cash flow tools to analyse and compare asset efficiencyo Exercise: identify 2 or 3 companies operating in the same industry but with different business models using key asset management ratios o Exercise: Compare the working capital ratios of 2 different companies to observe the difference between good and poor working capital management.o Illustration case study: using peer and ratio analysis to assess and compare asset management and effect on current and future cash-flow generation

Sector

o Sales growth, operating profit margin and working capital requirementso Capital expenditure and asset requirementso Competitive forces and critical success factors to sustain a competitive advantageo Exercise: Asset configurations, funding structures and earnings of companies in different sectorso Illustration case study: Key sector risks and critical success factors

Management and Shareholders

Review the strengths and weaknesses of management and the influence of company ownership: • Management performance • Corporate aims and goals and their effect on the company’s future • Shareholder structure, support and influence • Illustration case study: identify management strengths and weaknesses and shareholder structure / support.

Business Risk

Assess a company’s business strategy in order to understand the asset investment needs and commercial viability of a company and their effect on the quality and stability of cash flows

Business Strategy

o A company’s markets, products, services and competitive positiono Corporate actions underpinning its growth strategy o Illustration case study: how well positioned is the company and to what extent does it address sector’s critical success factors

Cash Flow Drivers

o Forecast operating performance and asset investment requirements o Illustration case study: robustness of future cash generation and key vulnerabilities.

Financial Risk

Evaluate the appropriateness of a company’s funding structure given the operating environment, management and shareholder goals and overall business risk and an evaluation of its debt service ability and refinance risk.

Financial strategy

Corporate treasury objectives: o Risk appetite of capital providers • External rating maintenance • Tenor matching, funding and liquidity and refinancing needs o Alternative sources of funding: trade, bank debt, capital markets, structured finance, equity etc

Liquidity

o Financial flexibility: measuring liquidity or payment readinesso Funding instruments used by companies that can increase the refinancing risk and overall financial risk o Exercise: Calculating on-going liquidity and the difficulty around off-balance sheet liquidity issues

Workshop TimingsBelow are typical timings for our courses. Participants will be advised upon registration should the timings change.

• Breakfast: 8:00am

• Course Starts: 8:30am

• Course Ends: 4:30pm

• Lunch: Starts between 12:30pm and 1:30pm, and lasts no longer than 1 hour

• Short breaks: 10-15 minutes are taken mid-morning and mid-afternoon

Dates/PricesDATES DURATION LOCATION PRICE

26th - 28th Sept 2016 3 Days BIBF BHD 950/-

3) Group Case Study (Studies)

The course makes extensive use of case studies, live examples and exercises to ensure that the training is highly interactive, practical, topical and challenging. Case studies are drawn from a number of countries and industries and provide participants with the opportunity to practice the application of the analytic frameworks and tools in context of real situations. The emphasis is on developing critical judgement; participants are required to be focused, practical and realistic in their approach

The aim of this group case study is to allow participants to apply the framework and tools of credit analysis to a company and make a concise and conclusive presentation to the group on the final day of the course: • Preparation and presentation of a complete credit analysis and critique of a financing proposal in small groups of 2 to 5 participants • Companies used for the group case studies will be drawn from the regional markets

Solvency

o Funding structure including off balance sheet obligations o Debt servicing ability using cash flow analysis o Rating medians to evaluate a company’s financial standingo Exercise: Assess the degree of financial risk and debt servicing o Future cash available for debt service using a simple debt capacity cash-flow modeo Refinancing risk: debt capacity vs. borrowing capacity o Exercise: Using traditional leverage ratios and comparing their effectiveness to cash flow ratios o Illustration case study: Measuring the affordability of debt, from the debt service viewpoint and the ability to repay debt

Note: This course utilises financial modeling exercises. Participants would need to bring their own laptops with Excel installed.

Leading Excellence in Banking

For further information, and to register.

Please contact the Centre of Banking:

Tel: (+973) 1781 5555 / 6320

E-mail: info@bibf.com or banking@bibf.com