Objective

• A European bank wanted to expand its coverage on 60 new HY and distressed credits within 4 weeks
• However, given their limited bandwidth, they partnered with Crisil Integral IQ
  

Crisil Integral IQ solution

• We set up an 8-member team experienced in credit research
• The team undertook research on the identified companies and developed a deep understanding of the business and industry dynamics
• Thereafter, we built end-to-end credit models to assess the investment rationale and risks of each company
• The team also performed sensitivity analysis on stressed companies and ascertained headroom on the financial covenants under various scenarios
• The team then benchmarked the companies’ bonds vs other similarly rated bonds to arrive at an appropriate relative valuation view
• Finally, the team prepared credit tear sheets, covering the credit summary, investment rationale and risks, relative valuation view, capital structure analysis, and recovery commentary
  

Client Impact

• The client was able to identify lucrative investment opportunities
• They also noted that the research was thorough and the valuation argument was well-balanced