Fundamentals of Credit Analysis

Fundamentals of Credit Analysis

Instructors: Doug Williamson

Access provided by ExxonMobil

6,585 already enrolled

2 modules

Gain insight into a topic and learn the fundamentals.

33 reviews

Beginner level

Recommended experience

4 hours to complete

Flexible schedule

Learn at your own pace

2 modules

Gain insight into a topic and learn the fundamentals.

33 reviews

Beginner level

Recommended experience

4 hours to complete

Flexible schedule

Learn at your own pace

What you'll learn

Explain the concept of credit risk and how it affects pricing in bonds.
Discuss the four Cs (Capacity, Collateral, Covenants, and Character) of standard credit analysis.
Analyze statements, calculate ratios to gauge borrower risk and its impact on debt pricing.
Compare different types of bonds based on their credit ratings and explain the meaning behind those ratings.

Skills you'll gain

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Assessments

6 assignments

Taught in English

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There are 2 modules in this course

This course provides a structured introduction to evaluating credit quality in corporate issuers. Learners examine credit risk fundamentals, the role of credit ratings, the “4 Cs” of credit analysis, and key financial ratios used to assess borrower risk and bond pricing. Through practical examples, participants learn how analysts interpret credit metrics to inform lending, investment, and risk management decisions.

Designed for professionals across front, middle, and back-office functions—or those aspiring to such roles—this course benefits individuals in lending, fixed income investment, operations, or risk assessment. No prior credit analysis experience is required; the program builds from foundational concepts to applied analytical techniques. By the end, learners will be able to explain credit risk, analyze financial statements, interpret credit ratings, and compare bonds by credit quality—skills essential for informed decision-making in diverse market conditions.

In this module, you’ll learn the foundations of credit analysis, including how credit risk fits within overall investment risk and how bonds are priced. You’ll explore the four Cs of credit analysis—capacity, collateral, covenants, and character—to assess borrower quality and repayment likelihood. Through practical examples and clear frameworks, you’ll gain the skills to evaluate issuers, understand bond valuation, and make informed credit decisions.

What's included

9 videos3 readings2 assignments

9 videos Total 33 minutes

Introduction to the Course and the Instructor 2 minutes
Investment Risk 4 minutes
Credit Risk 4 minutes
Bonds, Issuers, Borrowers and Investors 4 minutes
Bond Pricing 4 minutes
Capacity 4 minutes
Collateral 4 minutes
Covenants 4 minutes
Character 4 minutes

3 readings Total 25 minutes

Welcome to the Course 5 minutes
Additional Resources 10 minutes
Additional resources 10 minutes

2 assignments Total 40 minutes

Credit Risk and Bond Pricing 20 minutes
The Four Cs Of Credit Analysis 20 minutes

In this module, you’ll learn how to assess creditworthiness by evaluating financial statements, analyzing key ratios, and interpreting credit ratings. You’ll explore how assets, liabilities, profitability, and cash flow sustainability inform credit risk. You’ll also master the use of leverage, coverage, and profitability ratios, and understand the methodologies behind credit ratings, default probabilities, and loss recovery. Through expert-led videos, practical exercises, and real-world case studies, you’ll develop the skills to conduct thorough financial and credit analysis, enabling sound lending and investment decisions.