Fundamentals of Credit Analysis
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What you'll learn
Explain the concept of credit risk and how it affects pricing in bonds.
Discuss the four Cs (Capacity, Collateral, Covenants, and Character) of standard credit analysis.
Analyze statements, calculate ratios to gauge borrower risk and its impact on debt pricing.
Compare different types of bonds based on their credit ratings and explain the meaning behind those ratings.
Details to know
6 assignments
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There are 2 modules in this course
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.
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.
What's included
9 videos3 readings2 assignments
9 videos•Total 33 minutes
- Introduction to the Course and the Instructor•2 minutes
- Investment Risk •4 minutes
- Credit Risk •4 minutes
- Bonds, Issuers, Borrowers and Investors •4 minutes
- Bond Pricing •4 minutes
- Capacity •4 minutes
- Collateral •4 minutes
- Covenants •4 minutes
- Character •4 minutes
3 readings•Total 25 minutes
- Welcome to the Course•5 minutes
- Additional Resources•10 minutes
- Additional resources•10 minutes
2 assignments•Total 40 minutes
- Credit Risk and Bond Pricing•20 minutes
- The Four Cs Of Credit Analysis•20 minutes
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.
What's included
13 videos3 readings4 assignments
13 videos•Total 49 minutes
- Sustainable Cash Flows •4 minutes
- Profits and Losses •5 minutes
- Liabilities •3 minutes
- Assets •4 minutes
- Cover Ratios •5 minutes
- Profitability •3 minutes
- Leverage •4 minutes
- Loan to Value •3 minutes
- Credit Rating Agencies •4 minutes
- Ratings Scales and Default •4 minutes
- Investment and Non-Investment Grade Issues •4 minutes
- Probability of Default and Loss Given Default •4 minutes
- Conclusion and Takeaways•1 minute
3 readings•Total 30 minutes
- Additional Resources•10 minutes
- Additional Resources•10 minutes
- Additional Resources•10 minutes
4 assignments•Total 90 minutes
- Financial Statements Evaluation•20 minutes
- Financial Ratio Analysis •20 minutes
- Credit Ratings•20 minutes
- Final Assessment•30 minutes
Instructors
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Corporate Finance Institute
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Reviewed on Oct 22, 2024
The teacher is really good, concepts are clear and easy to follow
Reviewed on Jun 15, 2024
This course has helped me enhance my credit analysis skills which is very important part of my job.
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