25 March, 11am GMT
Do you feel overwhelmed when faced with the task of navigating through a complex, often multi dimensional financial model to locate relevant cashflows, calculations and outputs related to debt structuring and covenant calculations? As an analyst, you’re at the heart of the credit analysis process, tasked with preparing and gathering information relevant to assessing the ability and willingness of a borrower to fully repay (interest and principal) a loan on time, while managing the bank’s level of risk exposure.
But how do you interpret the information and the figures presented in the financial model and ensure that these align with the terms offered to the borrower in the term sheet, and later in the process, ensure that these are aligned with the long form of the credit agreements? In this high-impact webinar, we will dive deep into the critical financial metrics that every analyst needs to be able to identify, interpret and critically evaluate before referencing these in their recommendations and throughout the credit approval process.
Through the lens of a credit analyst, we will tackle the fundamental question: "What should an analyst really look for in a financial model?" We will break down the essential metrics you must scrutinise to determine whether the borrowers will be able to meet their loan obligations and, most importantly, we will uncover the red flags to look out for to identify potential risks.
Ready to sharpen your analytical skills and master the art of navigating and interpreting debt related matrices within financial models? This webinar will give you the tools, insights, and practical strategies for identifying the relevant matrices, being able to critically evaluate the information presented, identify deviations from terms set out in the financing agreements, make insightful observations, followed by informed recommendations..
Key takeaways:
- Lender’s Perspective: Understand key metrics which lenders prioritise and are often defined in the credit agreement —and how you, as an analyst, can ensure these criteria has been accurately reflected in the calculations presented in the financial model.
- Essential Metrics: Discover the mechanics behind the financial indicators such as DSCR, LLCR, distribution criteria and operating cash flows.
- Aligning Terms with Financial Projections: Learn how to evaluate whether the credit terms negotiated with the borrower such as interest rates, repayment schedules, cash reserves and covenants have been correctly reflected in the calculations presented in the financial models.
- Identifying Red Flags: Gain a practical framework for spotting inconsistencies in the forecasts presented by the financial models, errors in calculations of key metrices and deviations from the terms set out in the credit agreements.
- Real-World Case Study: Walk through the real-world example of a financial model, alongside a sample credit terms to spot potential issues.
By the end of this webinar, you will have the necessary skills to navigate through the models with confidence, to be able to make insightful recommendations, while ensuring alignment with the terms negotiated with the borrower as defined in the credit agreements, thus helping manage the level of exposure for the bank.
