The analyst’s view of the credit agreement
Credit agreements are long, and the analyst sits at the centre of the credit approval process. The job is to confirm that a loan is a good investment and a safe one, which means checking that the financial model matches the credit agreement.
This recorded webinar takes the view of a credit analyst and asks one question: what should an analyst look for in a financial model when reviewing a credit agreement? It sets out the metrics that show whether the borrower can meet its obligations, and the red flags that point to risks in the agreement.
What you will learn
- What lenders prioritise when they review a credit agreement, and how the analyst confirms those criteria are met
- The financial indicators that decide whether a project is worth lending to, such as the DSCR, LLCR, distribution tests and operating cash flow
- How to check that the interest rates, repayment schedules and covenants in the agreement match the model’s projections
- A practical way to spot warning signs of future repayment problems in the model and the agreement
- A worked case study of a credit agreement and financial model, with the main decision points