Credit risk analysis of the company

Hello, dear friend, you can consult us at any time if you have any questions, add WeChat: daixieit

ASSESSMENT ITEM 2: [INDIVIDUAL ASSIGNMENT]

Aligned subject learning outcomes

• SLO1: Assess how banks make credit and lending decisions, including critical analysis of financial statements and the operation of credit scoring systems;

• SLO 4: Develop a SME loan proposal

Group or individual

Individual

Weighting and due date

45%

Due: Week 8

Submit online by 10/9/2023 11.59pm

Requirements for

successful completion of this assessment item

You must achieve a minimum of 50% in order to pass this assessment item

ASSESSMENT ITEM 2: DESCRIPTION

The aim of the assessment is for you to synthesise the practical credit risk assessment by banks on corporation before granting a loan on a major project. The assessment is to develop a full borrower    risk rating scorecard, incorporating all risk criteria, and to produce a professional business report and to present the findings of the report to colleagues in a professional manner.

You need to identify a listed company on SGX of your choice. You need to identify a project carried   out/or to be carried out by the company, or other company modified to applied to your company or create an imaginary project related to your company.The company is going to apply a bank loan to    finance the project. You, acting as credit advisor to the bank, prepare a credit assessment report on  the company for the project financing. Your report should include the following:

1.    A description of the company background and its nature of business

2.    A description of the project to be embarked

3.   A financial performance and financial strength assessment of the company (ratios analysis)

4.   An evaluation of the project to be embarked (investment appraisal)

5.    Credit risk analysis of the company (focusing on the project financing) using one qualitative and one quantitative credit risk assessment techniques.

Instructions:

This assessment  requires that you undertake research and present your findings in a written report. It should demonstrate quality of research and overall quality of presentation.

Submission:

Students will be supported in the tutorials to develop and design their borrower risk rating scorecard and analysis. Appropriate databases will be discussed in the tutorials.

The Individual written report will contain the following:

•    Maximum word limit of 2,000 words +/- 15% (not including the front cover page and reference list). You may include an appendix no longer than 5 A4-sized pages.

•    Sources of information and evidence used in the report should be appropriately cited. Use APA referencing;

•    be the original work of the student;

•    be prepared from the perspective of an independent credit analyst.

ASSESSMENT ITEM 2: CRITERIA SHEET (OR RUBRIC)

Rubric grading criteria (45% of assessment)

Levels of achievement

Criteria

HD

85%-100%

D

75%-85%

C

65%-75%

P

50%-65%

N

0%-50%

Executive

summary

and first

page:

(CLO 1)

(SLO 1,4)

Weighting: 5%

Insightfully outlines

the critical issues with aclearly defined

background context and the structure and content of the report:

what, why, who,

when, how. Shows in- depth understanding  of key and emerging aspects of the

topic. Include

complete required

information on cover page.

Outlines the critical

issues with enough

background context to make the relevance of the topic clear and with clear aims, objectives

and key findings. Shows a developing

understanding of key aspects of the

topic. Include complete required information on cover page.

Identifies the critical issues within some

attempt to provide

background context. The aims, objectives and key findings could be more fully

developed. Include complete required

information on cover page.

Attempts to outline the critical issues,

but could have

developed the ideas more fully.

Background context to the issues and

content could have been made more explicit. Include

some required

information on

cover page.

The critical issues are not clearly identified AND/OR background context not clearly

defined. Include some required information on cover page.

Project

evaluation (CLO 1, 2) (SLO 1,4) Weighting: 20%

Provides a succinct

and critical

assessment of project under consideration based on appropriate investment appraisal techniques. Use

proper data and

indicators to support the analysis.

Demonstrates

extensive use of

accurate, well-

informed and relevant scholarly or industry think tank sources.

Provides a

comprehensive

assessment of project

under consideration

based on appropriate

investment appraisal

techniques. Use proper data and indicators to

support the analysis.

Demonstrates adequate accurate, well-informed and relevant scholarly or industry think tank

sources.

Provides a generally sound assessment of project under

consideration based on appropriate

investment appraisal techniques. Use

generally sound data and indicators to

support the analysis. Demonstrates some accuracy, well-

informed and relevant scholarly or industry think tank sources.

Provides a

satisfactory

assessment of

project under

consideration based on appropriate

Poor assessment of project appraisal.

Lacks research based on scholarly or

industry think tank sources.

investment appraisal

techniques. satisfactory

Use

data

and indicators to support the

analysis.

Demonstrates

satisfactorylevel of scholarly or industry think tank sources.

2023-09-03