CareEdge Ratings Credit Analyst Interview Questions and Answers

Q1. Valuation techniques
Ans. 
Valuation techniques are methods used to determine the value of a company or asset.
• Common valuation techniques include discounted cash flow (DCF), comparable company analysis, and precedent transactions analysis.

• DCF involves estimating the future cash flows of a company and discounting them back to present value.

• Comparable company analysis involves comparing the financial metrics of a target company to similar publicly...read more
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Q2. Fcf calculation
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Q1. What is credit rating
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Credit rating is an evaluation of the creditworthiness of an individual or entity based on their financial history and ability to repay debts.
• Credit rating is a measure of the likelihood that a borrower will default on their debt obligations.

• It is assigned by credit rating agencies such as Standard & Poor's, Moody's, and Fitch.

• Credit ratings range from AAA (highest) to D (default).

• Higher credit ratings indicate lower r...read more
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Q2. How to determine risk
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Risk can be determined by analyzing financial statements, credit history, industry trends, and economic conditions.
• Analyze financial statements to assess liquidity, profitability, and leverage ratios

• Review credit history to evaluate past payment behavior and outstanding debts

• Consider industry trends and competitive landscape to understand external risks

• Assess economic conditions such as interest rates, inflation, and G
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Q1. Detailed math related questions
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Q1. Tell me something about yourself,
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Q2. Global markets products questions
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Qa, logical reasoning, verbal reasoning, finance basics

Q1. About investment banking, cv finance related questions
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1 hour test of general aptitude questions

Skills of Python,R,SQL

Q1. Normal queries, mainstream questions
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Q1. Short introduction about you ?
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Q2. What are three statements ?
Ans. 
Three financial statements used by companies to assess their financial performance.
• Income Statement: Shows a company's revenues, expenses, and profits over a specific period of time.

• Balance Sheet: Provides a snapshot of a company's financial position at a specific point in time, showing assets, liabilities, and equity.

• Cash Flow Statement: Details the cash inflows and outflows of a company, helping to assess its liquidi
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Q1. 5 Cs of credit analysis
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The 5 Cs of credit analysis are character, capacity, capital, collateral, and conditions.
• Character refers to the borrower's reputation and credit history.

• Capacity assesses the borrower's ability to repay the loan based on income and existing debts.

• Capital looks at the borrower's assets and net worth.

• Collateral is the property or assets that can be used as security for the loan.

• Conditions consider the economic environme
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Q2. What is Covenant ?
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Covenant is a financial agreement between a borrower and a lender that outlines the terms and conditions of a loan.
• Covenants are designed to protect the lender by ensuring the borrower meets certain financial ratios or performance metrics.

• There are two main types of covenants: affirmative covenants (requirements the borrower must meet) and negative covenants (restrictions on the borrower's actions).

• Examples of covenant...read more
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