Welcome to Credit Risk Store.
Your e-learning platform for Corporate Lending.

Credit Risk Store's Blog

Are Saudi companies over-valued? Corporate Finance view

Of the 55 listed Saudi companies chosen for this survey with a total capitalization of SAR 989 million, and by using a simple perpetuity calculation, it seems that their Enterprise Values (EV) reaches only SAR 72 million. In other words, the portfolio was over-valued by
Read more

How Good is Bisco in terms of Credit Risk?

Why is everyone clamoring over to buy a large stake in Bisco Egypt? Is the cake and biscuit maker so successful that it will generate fortunes in future? A Credit Risk and Evaluation perspective.
Read more

What are the Credit Risk impact of Tesco’s accounting scandal?

In a recent article by the Harvard Business Review, Amazon was admired as being able to generate much cash flow despite having a very low net margin (http://blogs.hbr.org/2014/10/at-amazon-its-all-about-cash-flow/). Yet in the current news, the Chairman of Tesco resigned for overstating its already low profits by
Read more

Are all schools in the GCC low Credit Risk rated?

GEMS recently issued a perpetual subordinated Sukuk for USD 200 million, carrying a coupon of 12% (http://goo.gl/G54cz3). This is a company that has a Financial Rating of 3.6 (6 Sigma), a Category 1 obligor in terms of credit risk, and should command very fine pricing.
Read more

Why Standardized banks should operate as IRB for managing Credit Risk

Assume you had a bank that operated under Basel’s Standardized approach (which is essentially the majority of banks worldwide today). Also if it were an average commercial bank, its Revenue to Expense ratio would be 2:1. With a Capital Adequacy of 10.5%, and a Return
Read more

Ponzi Schemes: A special Credit Risk feature

It may happen to individuals, and is also prevalent with companies. With individuals it is a case where a schemer lures investors with high returns, and with the proceeds pays off previous investors. The scheme requires an ever increasing cash inflows to pay off a
Read more

How Risky is a Saudi Portfolio? A selection of Credit Risk Ratings

In our previous article on Kuwaiti companies, we addressed the point that given the relative wealth in the country, why were almost half of the listed companies we sampled in Kuwait risk rated above 6.5; i.e. watch listed or worse in terms of credit risk,
Read more

Is there a Credit Risk characteristic to the Retail sector?

In our previous article on EMKE and Walmart, we referred to Deloitte’s recent publication titled Global Powers of Retailing 2014 (http://goo.gl/Wj4FEP), in which 250 of the largest retail stores in the world were listed, and of which EMKE Group (the Lulu chain) was reported as
Read more

Beauty is certainly in the eye of the Credit Risk beholder.

According to the company’s website L’Oreal Group is the world’s largest cosmetics and beauty company with a portfolio of 27 international brands including Lancôme, Maybelline, and Redken. With an organizational structure based on distribution channels and a strong sales force, it aims to please customers
Read more

Saudi Cement Companies Risk Ratings – Credit Risk perspective

Why are the Saudi Cement companies’ credit risk ratings so low? What is their secret and is this secret sustainable? Using 6 Sigma’s Credit Risk System we estimated various Saudi companies’ risk ratings. Of these, the Cement companies showed very low ratings, well below what
Read more

Get the
5 Mistakes
Bankers Do in
Credit Analysis

You’ll discover what the 5 mistakes are and how to avoid them.

PLUS, you’ll get a free subscription to our weekly newsletter.

We promise to never sell, rent, trade or share your email with any other organization.

Stay conected!

Browse the
Credit Risk Store

The simple methodology used in our Essentials of Accounting online course allows you to understand ...

Learn More About This E-Course Here

This Financial Analysis online course shows you how to assess the company’s business model and its ability ...

Learn More About This E-Course Here

Sigma’s Credit Risk Management online course series are intended to introduce methodologies that makes credit ...

Learn More About This E-Course Here

The Portfolio Risk Rating and Stress Testing online course is designed to help you understand how to create ...

Learn More About This E-Course Here

The Facility Structuring online course shows you, step by step, how to identify both the short-term and long-term ...

Learn More About This E-Course Here

If you’re already analyzing obligors, and generating credit risk ratings for individual clients, this Credit Analysis ...

Learn More About This E-Course Here

Find This Book Online