Dates and location
Pricing
Hours
Dates and location
Pricing
Hours
Description
Look at how loan covenants benefit both lender and borrower.
In this course, you will learn how the loan covenants are used in the lending process. You will compare different types of covenants and discuss what a credit analyst should do in the event of a covenant breach.
Discussion will include 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. The course will explain what these ratios are, how to calculate them, and how they are used in evaluating a company's creditworthiness.
You will also complete a case study and build a covenant model in Excel. You will calculate a company's key credit metrics based on the historical and forecast financial statements, and compare the metrics to the covenants that are set for this business and suitable for the loan.
This course includes a quiz that you can attempt multiple times. To ensure that your understanding of the material is accurately assessed, the correct answers will not be shown after each attempt.
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Key Takeaways
Upon completion of this course, you will:
- Understand the key concepts of covenants in a loan agreement.
- Explain different types of loan covenants.
- Calculate key financial covenant metrics.
- Use Excel to model financial covenants.
Who Will Benefit
Aspiring credit analysts working in commercial lending, insurance, underwriting, rating agencies, corporate credit analysis, and other areas of credit evaluation.
How to Access the Course
To access your course, visit the CPA Ontario Blackboard site and sign in using the same username and password used for the Registration Portal.
Important: Course access begins on the date of purchase and remains available for the Access Time specified for the course under Dates and Location. Please review the access time before purchasing. Note that it may take up to 15 minutes after registration for the course to appear in Blackboard.
Registration, cancellation, withdrawal, and other CPA Ontario PD policies can be found here.
Speaker(s)
Tim Vipond is an entrepreneur, financial analyst and former investment banker. He has worked across a wide range of corporate finance, financial modelling and forecasting roles at CIBC World Markets and Goldcorp Inc. Tim is the CEO of the Corporate Finance Institute.