You have been short listed by Bank of Abraham for an interview to work as a senior credit analyst in their head office in New York City. You are very excited at this opportunity not only because it offers you an opportunity to further utilize your skills in financial analysis but also because the bank is offering you very attractive fringe benefits including an all-expenses paid vacation to a destination of your choice once a year (you can also bring along a friend or family member).

Prior to the interview, the panel has asked you to produce a report, recommending whether to provide a loan to a Small-cap company of your choice listed on the New York Stock Exchange. The company is seeking a loan of 10% of its latest revenue figure to finance a new overseas venture. Refer to the last available 10-K for the latest revenue figure. You have also been provided a link to a website that providesa list of companies by Exchange Listing, Region and Market Cap. Choose NYSE, North America and Small Cap(Links to an external site.). (The link is

http://www.nasdaq.com/screening/companies-by-industry.aspx?exchange=NYSE®ion=North+America&marketcap=Small-cap&country=United%20States&state=All%20states)

Task

Your task is to produce a Credit Analysis Report recommending whether to provide the loan. You have been reminded that, the panelists are all busy professionals and are not interested in seeing a very long report; therefore, you will need to keep to the word limit. The panel has also requested that you focus on analyzing the issues rather than on purely describing information based on the following two sections.

Section A: Criteria

Company Overview & Firm-Specific Risks

Short-Term Liquidity Risk

Long-Term Solvency Risk

Based on the above three criteria, your recommendation on whether to provide the loan or not

Section B: Other

The task required you to provide a recommendation on whether to provide a loan or not based on three categories of information. In the final section, you are elaborate on the limitations of the above analysis, including what further sources of information you would like to utilize to make a more informed decision.