After completing session 1, participants will be able to analyse a bank's economic risk and relate it to the country's regulatory mechanisms. This is important in order to appraise the environment in which some banks operate. Participants will further experiment with bank intrinsic creditworthiness, taking into account the business positioning and capital requirements, including the impact on bank credit ratings. After completing the session participants will further be able to explain the effect of an improving or deteriorating risk position and relate it to a bank's funding & liquidity position. The participant will deep dive into Standard & Poor's approach of assessing credit risk, which very much focuses on the agency's own calculation of key ratios.
After completing session 2, participants will develop a broader point of view about the different global support mechanisms and analyse which mechanism is to be utilized in distinctive ownership structures.
After completing the S&P case study session, participants will be able to retrieve the information in the latest rating reports and examine how S&P assesses credit risk. The participants will discover which information the rating agency shares and which information potentially remains encrypted, including categorizing the relevant rating factors and qualitative adjustments. This will lead participants to form their own opinions about credit risk on selected financial institutions. The participants will further examine how S&P uses public data and adjusts key ratios according to it own methodology.
After completing session 3, participants will be able compare Moody's bank rating methodology with other international criteria, discovering the agency's approach of assessing macro risk, while relating it to a bank's intrinsic financial profile. Participants will identify situations where Moody's applies qualitative adjustments and analyse which effect they have on the final rating. Moody's global bank rating methodology as well takes into account various support mechanisms, and participants will classify the similarities and differences to other rating agencies' criteria.
After completing the Moody's case study session, participants will be able to retrieve the information in the latest rating reports and examine how Moody's assesses credit risk. The participants will discover which information the rating agency shares and which information potentially remains encrypted, including categorizing the relevant rating factors and qualitative adjustments. This will lead participants to form their own opinions about credit risk on selected financial institutions and compare the Moody's approach of using public financial data to other rating agencies' approaches.
After completing session 4, participants will be able to differentiate Fitch's approach of credit risk analysis from other global players' approaches. Participants will be able to analyse bank credit risk in the light of Fitch criteria and categorize the most important rating factors, in order to form their own opinions about a specific financial institution. Fitch`s significantly reduces the use of quantitative measures, rather the rating agency uses the approach of descripting evaluation. Discovering this approach of rating criteria will open up the participants' minds about how many possibilities there are in fact for assessing banks' credit risk and how many factors are being taken into account.
