Fundamentals of Credit Analysis

Fundamentals of Credit Analysis

Instructors: Doug Williamson

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2 modules

Gain insight into a topic and learn the fundamentals.

33 reviews

Beginner level

Recommended experience

4 hours to complete

Flexible schedule

Learn at your own pace

2 modules

Gain insight into a topic and learn the fundamentals.

33 reviews

Beginner level

Recommended experience

4 hours to complete

Flexible schedule

Learn at your own pace

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.

Skills you'll gain

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Assessments

6 assignments

Taught in English

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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 videosTotal 33 minutes

Introduction to the Course and the Instructor2 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 readingsTotal 25 minutes

Welcome to the Course5 minutes
Additional Resources10 minutes
Additional resources10 minutes

2 assignmentsTotal 40 minutes

Credit Risk and Bond Pricing20 minutes
The Four Cs Of Credit Analysis20 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 videosTotal 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 Takeaways1 minute

3 readingsTotal 30 minutes

Additional Resources10 minutes
Additional Resources10 minutes
Additional Resources10 minutes

4 assignmentsTotal 90 minutes

Financial Statements Evaluation20 minutes
Financial Ratio Analysis 20 minutes
Credit Ratings20 minutes
Final Assessment30 minutes

Instructors

Instructor ratings

(12 ratings)

Doug Williamson

Starweaver

2 Courses9,850 learners

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Starweaver

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Reviewed on Jun 16, 2024

This course has helped me enhance my credit analysis skills which is very important part of my job.

Reviewed on Oct 23, 2024

The teacher is really good, concepts are clear and easy to follow

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