Easy Corporate Credit Analysis Practice Questions

142 free easy-difficulty Corporate Credit Analysis questions, drawn live from KomFi's calibrated bank. Build the foundation first: these test the core mechanics every harder question assumes.

1. Apex Manufacturing has a total exposure at default (EAD) of… — What is the annual expected loss (EL) for this
2. What is the company's Funds From Operations (FFO)?
3. Which statement best reflects the credit risk synthesis?
4. A credit agreement requires a borrower to maintain a Net Lev… — What type of covenant is this?
5. Using the Merton structural model intuition, if a company's equity volatility (sigma_V) increases significantl
6. What is its CET1 ratio?
7. If EBITDA is $150M, what is the entry leverage multiple?
8. What is its EBITDA/Interest coverage ratio?
9. If revenue is $500M, variable costs are 60% of revenue, and fixed costs are $100M, what is the DOL?
10. What is the maximum percentage decline in EBITDA that the company can sustain before breaching the covenant, a
11. What is its CET1 ratio?
12. If the liquidation value of the assets is $350M, which group is the fulcrum security?
13. What is the company's Days Sales Outstanding (DSO)?
14. According to standard rating agency thresholds for a diversified industrial, which of the following ratings ma
15. For a specialty retailer, what is the historical industry convention multiplier used to capitalize operating l
16. What is the firm's net leverage ratio?
17. Following the strict absolute priority rule, what is the recovery for the Senior Unsecured Bonds?
18. Ironclad Corp has a credit agreement that requires the firm… — This is an example of what type of covenant?
19. Jupiter Systems is struggling with its debt load. To avoid a… — How would a rating agency most likely classify
20. In a well-known creditor-on-creditor move, a company transfers its valuable trademarks and brands to an 'unres
21. Andean Iron Corp is a low-cost iron ore producer. In a globa… — What does this imply for its credit rating com
22. What is the Net External Debt?
23. If the current exposure at default (EAD) is $200M, what is the calculated Expected Loss (EL)?
24. Based on standard notching rules, what is the likely rating of this specific bond?
25. Riverbed Logistics reports $4,200M in revenue. However, a si… — How does this impact the credit risk assessmen
26. Serta Simmons Bedding executed a transaction where 65% of it… — What is this tactic called?
27. Zenith Corp has an Exposure at Default (EAD) of $100M, a Pro… — What is the Expected Loss (EL) for this exposu
28. Falcon Aviation has been assigned a credit rating of BBB-. Based on standard market conventions, how is this c
29. What is the primary implication for creditors of the parent company?
30. Orion Ltd has an Expected Loss (EL) of $5M, a Probability of… — What is the Loss Given Default (LGD) for this

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