QUESTION 1 (CLO 1)

Credit analysis is a process that determines the ability of a company to ulfil their financial obligations. Banks look at these 5 Cs to help determine the creditworthiness of the business thats asking for financing. Youre as financial analyst of CIMB Bank Bhd, explain the 5C with relevant examples. (25 marks)

QUESTION 2 (CLO 2) A credit rating is an opinion of a particular credit agency regarding the ability and willingness an entity (government, business, or individual) to fulfil its financial obligations in completeness and within the established due dates. Discuss any FIVE (5) importance of credit policy for corporate. ( 25 marks)

QUESTION 3 (CLO 2)

a) Credit rating agencies (CRAs) play a key role in financial markets by helping to reduce the informative asymmetry between lenders and investors, on one side, and issuers on the other side, about the creditworthiness of companies or countries. There are currently two rating agencies in Malaysia that are approved by Securities Commission Malaysia RAM Rating Services Berhad (RAM Ratings) and Malaysian Rating Corporation Berhad (MARC). Discuss the standard credit rating table used by Malaysia agency.

b) Explain any FIVE (5) functions of credit rating by providing examples. (10 marks) (15 marks) FIN3083 CREDIT MANAGEMENT/ FE2021-1 FIN3083 CREDIT MANAGEMENT / FE (Final Assignment) Page 3 of 7 (Total: 100 marks)

QUESTION 4 (CLO 3)

You are as a Credit Control Manager of a Construction Company and have been instructed by your superiors to come out with a new credit policy for the subsidiaries. You need to provide information needed for the companies to implement this new policy next year. The following information is required of the new subsidiary company: a) Name of the company

b) Background of the company

c) Board of Directors

d) Product or Services provided

e) Organizational Chart

f) Credit Management Policies

g) Product or Services provided

Hint: You may choose any construction industry. You can use information / data from a public listed company that you can find at BursaMalaysia website as a reference.