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:
- A description of the company background and its nature of business
- A description of the project to be embarked
- A financial performance and financial strength assessment of the company (ratios analysis)
- An evaluation of the project to be embarked (investment appraisal)
- 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 analys