Category: EL tools

Time changes everything A way to think about assessing B/S items Validity, Valuation, Liquidity applied to AR Validity, Valuation, Liquidity

EBITDA is NOT cash flow PD Analysis: EBITDA =/= CASHFLOW Adjustments to Financial Statements Moody’s adjustments to financial statements **

What is Enterprise Value Equity Value Equity Value = Enterprise Value – Net Debt Gross Debt vs Net Debt Absence

Moody’s PACED: Cash Flow Drivers Key Drivers Primary Ratios Secondary Ratios Profitability – Volume of Sales – Sales price –

CREDIT/ CASHFLOW Golden Rule: Credit analysis comes first before any discussions. No fish-market bargaining. All must be backed by Credit

Rating Scale Comparison Counterparty Risk Rating Scale Rating Models Process of Building Rating Models from Data Preparation to Model Validation

You never know until you look at the facts, thus you need to access the validity yourself. Goes straight to

Difference between Commercial Banking for SME and Corporate Banking for large corp One often misused argument that the bankers from

VIT/PIT Factors to consider along time Dynamic PD analysis unravels the real counterparty PD Projecting financials forward Dynamic PD analysis

Analysts often rely on information contained in a company’s financial statements as a primary source of information about the company.