Sovereign Credit Risk

Description

This course identifies relevant approaches of credit analysis that are useful to incorporate in a financial institution’s own internal rating tool. Further, this enables participants to deepen their expertise about credit risk for global banks and sovereign obligors.

Covering Standard & Poor’s, Fitch and Moody’s methodologies helps participants identifying general trends on each of the entities’ rating factors and qualitative adjustments. Through detailed case studies participants will be able to analyse how rating agencies apply their own criteria, and especially which questions remain unanswered in public rating reports. Further participants will develop skills to read between the lines in rating reports in order to fully being able to form their own informed opinions about credit risk of financial institutions of their interest.

The understanding of these methodologies wiill be transformed into practical tips about how internal ratings tools should assess credit risk and which factors need to be taken into account, and to what extent, when analysing ratings. The seminar further discusses also the availability of validated data, so that participants instantly know where to find the right underling information for each of the rating factors, taking into account qualitative as well as quantitative data.

Overall this seminar leads participants to keep track of probability of default and helps to conceive an informed opinion about counterparties’ creditworthiness. This again, helps improve a financial institution’s own internal rating tool, make it more robust and exceptionally forward-looking.