Start Date: 5/6/2021 1:00 PM MDT
End Date: 5/6/2021 2:30 PM MDT
Credit analysts are charged with identifying, measuring, and monitoring credit risk in any given transaction. An analyst must understand the borrower’s sustainable repayment ability, including both primary and secondary repayment sources. Repayment ability in a “normal” or positive market condition can be relatively easy to determine and used as a basis for the loan decision and risk rating. However, market conditions are not always favorable and adverse conditions can arise relatively quickly (as in 2020). Credit analysts should apply factors that reflect the impact of an adverse market on a borrower’s primary and secondary repayment sources. This presentation will provide insight for credit professionals regarding transaction-level stress testing, including impact to operating income, guarantor support, and collateral, and will include considerations for both commercial non-real estate and commercial real estate loans.