Credit Risk Analyst interview

Also interested as this is a career I would like to move into

Also interested :)

Is this an internal mobility interview?

Never really encountered a case study for credit risk management but i would assume that they would ask you “How do we do our analysis” in which the answer at a high level would be: You mainly look at 4 things, 1. Leverage, 2. Liquidity, 3. Profitability, 4. Operational Environment (e.g. Is the counterparty/company/client a market leader, are they state owned, are they affected by a particular asset such as oil, etc.) If you answer that then you should be in a good spot. As for the case study, they can probably give you a question that says “Which company would you rather lend to” given certain parameters/numbers/details that they will provide you with. You probably have to calculate debt/ebitda, Free Cash Flow, and change in Net Working Capital. This is what i would think the case study would look like. In my opinion, i think a good way to prep is by read/watching financial statements analysis videos on YouTube in the Mergers&Inquisitions channel. Hope this helps, lmk if theres anything i can help with. Maybe someone else can provide better guidance.

I would imagine some degree of looking at a company’s financial situation (historicals and projected financials) and analyzing the company’s creditworthiness within their business context. There are a lot of aspects regarding debt that I would suggest you catch up on, such as debt capacity, interest coverage, structure (types of debt, tranches), terms, rates etc. all of those would be helpful incrementally to study for.