International Bank Ratings - The Rating Agencies’ Methodologies

Prague, NH Hotel Prague
Ron Slomovits

The seminar enables the participants to deepen their expertise about bank credit risk and thoroughly apply the rating agencies' methodologies and modus operandi.
The two-day seminar discusses a broad variety of rating agencies' criteria for global banks. Through detailed case studies the participants analyse how the rating agencies apply their own criteria, and which questions remain unanswered in public rating reports. The seminar covers S&P, Fitch and Moody's methodologies in order to identify general trends on specific entities' rating factors and qualitative adjustments. Further participants will comprehend to read between the lines in rating reports and be able to form their own opinions about credit risk on specific financial institutions of their interest.

Starting position:
International rating agencies assess a bank's creditworthiness according to their own methodologies and criteria. Consequently, even taking into account the same set of hard fact data, rating outcomes may vary significantly form one rating agency to another. The large number of rating factors, and the complex interrelationships between various entities' ratings and their different sectors, make it very difficult to track rating decisions and almost impossible to predict them.

The two-day seminar deals with the individual rating factors and thus the basic bank rating criteria on one hand, on the other hand practical examples in the form of detailed case studies for rated banks will lead participants to in-depth knowledge of the rating agencies' world of credit risk. In addition the seminar discusses a selection of current ratings, in order to compare them qualitatively and quantitatively. Furthermore, the seminar covers current events and will evaluate how they might impact on specific banks' credit risk.

Added value:
The aim of the seminar is giving participants a thorough analytical perception of international bank rating criteria and discussing how they interrelate with ratings of other entities (e.g. central government and local authorities). The detailed work on the case studies allows participants to break down far-reaching events in the banking sector to a single credit rating and use the knowledge for each individual own purpose. By guiding the participants through the various bank rating methodologies, the seminar explains how rating agencies work in detail and how they derive their rating decisions. This facilitates the participants to anticipate rating changes and initiate appropriate measures on a timely basis.

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