SAARC FINANCE,
REGIONAL SEMINAR, ISLAMABAD
22
A Value-based Credit Analysis
Framework
Link past with present
realities
Qualitative
Quantitative
Link Mitigation with Risks
Management Quality and Governance
Business Risks:
•Industry
•Value Drivers
•Group Structure
Financial Risks:
Link # with business
Cash flow, liquidity
Operating
Cycle
Cash Flows for All
Financial Obligations
Business Projections
Financial Forecasts
•Protection and
Control
•Priority of Claim
Security /
Covenants /
Risk Triggers /
Etc.
Products & Opportunities
Optimal Risk /
Reward:
“Economic Value”
Ongoing Review (Client Relationship Management)
HISTORICAL
ANALYSIS
FORWARD
PROJECTION
STRUCTURE
FACILITIES
MONITOR
FACILITIES