Uncategorized Archives -

Why is Suez Cement’s Credit Risk so low?

This is the second of our analysis on Egyptian companies series, and another one that has a low risk rating of 3.39 (using 6 Sigma’s Credit Risk System). Another investment grade company par excellence, what we consider at 6 Sigma as Category 1 company from

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.

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

What to do with Credit Risk Ratings?

In line with Basel guidelines, and best practices, a credit risk rating system that a bank uses has to have predictive features to assess how far away an obligor is from default. The closer it is, the higher the rating. This predictive power centers on

Credit Risk issues at your finger tips

Over the recent two months, we have had a large number of signups to our website. Aside from the 5 Mistakes in Credit Application articles, many subscribers checked and read the various articles on Credit Risk which we have published on the site. So I

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

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

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

Middle East Complex (MEC) – How banks got the Credit Risk all wrong.

It is not that banks fell into the trap of looking at traditional ratios and got it all wrong. It is that they ignored the advice altogether at a time when they could have done something to avoid the high Credit Risk.

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.

get the 5 free mistakes now

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

Stay conected!

Credit Risk Store's Blog

Why is Suez Cement’s Credit Risk so low?

How Good is Bisco in terms of Credit Risk?

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

What to do with Credit Risk Ratings?

Credit Risk issues at your finger tips

Why Standardized banks should operate as IRB for managing Credit Risk

Ponzi Schemes: A special Credit Risk feature

Is there a Credit Risk characteristic to the Retail sector?

Middle East Complex (MEC) – How banks got the Credit Risk all wrong.

Get the
5 Mistakes
Bankers Do in
Credit Analysis

Browse the
Credit Risk Store

Essentials of Accounting

Financial Analysis

Credit Risk Management

Portfolio Risk Rating and Stress Testing

Credit Facility Structuring

Credit Application Basics

Get the 5 Mistakes Bankers Do in Credit Analysis

Browse the Credit Risk Store

Get the
5 Mistakes
Bankers Do in
Credit Analysis

Browse the
Credit Risk Store