In this Loan Covenants course, we will demonstrate how the loan covenants are used in the lending process.
We will start this course by defining covenants and discussing how they benefit both the lender and the borrower. We will then compare different types of covenants and discuss what a credit analyst should do in the event of a covenant breach.
After that, we will discuss key financial covenant ratios such as total liabilities to equity ratio (debt to equity), debt service coverage ratio (DSCR), working capital ratio, and debt to EBITDA ratio. We will explain what these ratios are, how to calculate them, and how they are used in evaluating a company’s creditworthiness.
Finally, we will complete a case study where you need to build a covenant model in Excel. We will calculate a company’s key credit metrics based on the historical and forecast financial statements. We will compare these metrics to the covenants that are set for this business and are suitable for the loan.
Upon completing this course, you will be able to:
CFI’s Certified Banking & Credit Analyst (CBCA)® Program offers skills including credit evaluation, documentation, and review procedures. For beginners to advanced users, the CBCA® program is designed to help you become a world-class credit analyst.
This Loan Covenants course is perfect for any aspiring credit analyst working in insurance, underwriting, rating agencies, commercial lending, corporate credit analysis, and other areas of credit evaluation.
6 courses from beginner to intermediate level.01 Optional
16 courses from beginner to intermediate level.02 Required
13 courses in advanced and intermediate levels.03 Required
Submit your CBCA™ checklist and order your certificate.04 Required
Get access to the Global Corporate Finance Society.05 Optional
Commercial Banking & Credit Analyst (CBCA)™ courses are offered 100% online, allowing you the flexibility to start the Commercial Banking & Credit Analyst (CBCA)™ program anytime and learn when it’s most convenient for you.
The program is a part of the All Access Subscription, which includes all programs and courses.
CFI courses are designed by instructors with over 21 years of financial analyst training experience.