WHAT'S NEW?

FINANCIAL MARKET COURSES

Credit Risk Measurement – PD & Risk Rating

This course describes probability of default (PD), the factors that affect it, how it is calculated, and how it can be converted into an internal credit rating. The course also outlines some of the issues associated with PDs and internal credit ratings, in addition to the differences between internal and external credit ratings. The role of credit rating agencies in the provision of external ratings is also described in detail, along with the main issues surrounding the use of such ratings.

  • OBJECTIVES

    On completion of this course, you will be able to:

    Describe the importance of probability of default (PD) and how it is used in determining an internal credit rating

    Identify the differences between internal and external credit ratings, and outline the function of external credit ratings that are provided by credit rating agencies (CRAs)

  • COURSE OUTLINE

    Topic 1: Probability of Default (PD)

    What is Probability of Default (PD)?

    Factors Affecting PD

    PD vs. Internal Credit Ratings

    Calculating PDs & Determining Internal Credit Ratings

    Ratings Substitution & Capping

    Uses of Internal Credit Ratings

    Issues with PDs & Internal Credit Ratings

    Topic 2: External Credit Ratings

    Internal vs. External Credit Ratings

    Credit Ratings Providers & Ratings

    Ratings Methodologies

    Transition Matrices

    How are External Ratings Used?

    Issues with External Credit Ratings

  • PREREQUISITE KNOWLEDGE

  • ESTIMATED COMPLETED TIME

    60 Minutes

Next Course

VIEW COURSE

INTERMEDIATE

Support

Accreditations

General: info@intuition.com

Accounts: ar@intuition.com

http://support.intuition.com

Intuition engages with over 30 accreditation bodies to ensure Know-How can be used for CPE credits. If your organization needs CPE from a body not listed below, contact us and we will endeavour to have them included.

© Copyright 2016 by Intuition. All Rights Reserved.