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BSE-ICRA Certification on Fundamentals of Credit Rating

                                                                                   

  

 

EXAMINATION PLAN & CERTIFICATION

ICRA Limited and Bombay Stock Exchange jointly offer this certification in Fundamentals of Credit Rating.  

 

BSE Training Institute conducts a test of 100 marks consisting of 60 questions. The questions are objective type having multiple choices, with a provision of negative marking of 0.25 per mark for wrong answers.

 

The BSE-ICRA Certification is awarded to only those candidates who obtain a minimum of 60% marks.

 

There is no minimum eligibility criterion for taking the test.

 

 

OBJECTIVES OF THE TEST

 

1.       To educate about what credit rating is and what it seeks to convey.

2.       To explain the credit rating process, including the systems, practices and procedures typically followed.

3.       To explain the typical methodology used by rating agencies to assess debt repayment capabilities of entities across various sectors.

 

 

TEST SYLLABUS

 

Credit rating

Introduction, origin, use and limitations, rating symbols, rating process, investment and speculative grades, surveillance, creditwatch, rating ceiling, rating/grading products

 

Corporate credit rating

Business risk – industry risk, issuer’s competitive position, project risks, impact of diversification; financial risk – profitability, leverage, coverage, working capital ratios, cash flow analysis, accounting quality and financial flexibility

 

Project finance ratings

Framework for risk evaluation – project level risk contractual structure and financial evaluation including simple rate of return, pay back period, benefit cost ratio, net present value, profitability index, internal rate of return

 

Public finance ratings

Framework of assessing credit quality of State Government, Local Government and Municipal Corporations

 

Securitization

Participants, benefits of securitization, amortizing & revolving structures, cash flow waterfall, credit enhancement, securitization types – ABS, MBS, CDO; Loan sell-offs; rating of securitization transactions, risks involved in securitization; special features and tranching

 

Rating of banks and NBFCs

Introduction to NBFCs, capitalization, liquidity and interest rate sensitivity; credit rating methodology for finance companies – business risk, financial risk, parent support, definitions; credit rating methodology for banks – operating environment, ownership structure, financial performance, economic capital, risk management, management strategies and key ratios

 

Evaluating quality of ratings

Rating transitions, inverse credit ratio and rating activity, cumulative default rates

 

TARGET AUDIENCE

 

Employees of Banks, Financial Institutions and Management Students, Others willing to pursue career in credit rating and credit risk analysis.

 

DURATION & TIME

120 minutes

 

VALIDITY

3 years

 

FEES

Rs.1000.00 (Inclusive of Service Tax and Study Material)

 

REGISTRATION / ENROLLMENT

 

Candidates are required to register for the Test through Online Registration Process using following URL : http://www.bseindia.com/training/nism.asp

 

Payment for the Test can be made either online through Credit Card or though submission of Demand Draft drawn in favour of “Bombay Stock Exchange Ltd” payable at respective Centre. Candidates paying Test Fees through Demand Draft are required to provide to the Exchange the print out of the “My Profile” page, Exam Module, Exam Centre, Date of Exam and Exam Time Slot alongwith 3 passport size photographs.

 

Click here to view the list of Test centres

 

CERTIFICATION EXAMINATION INQUIRY

Phone: 022 – 2272 8856
E-mail: training@bseindia.com

 

Certification Examination (Outside Mumbai) for 75 or more candidates:

For conducting Certification Examination for 75 or more candidates, contact:
Piyush Shelat 022 – 2272 8197
E-mail: piyush.shelat@bseindia.com

 

 

Test Schedule

 

Programme Schedule