| name | credit-analysis |
| description | Assess creditworthiness - leverage, coverage, liquidity, cash flow durability, and debt structure - for a lender/bondholder view. Use when evaluating debt, covenants, or default risk. |
credit-analysis
Can they service and repay the debt? Focus on cash flow durability and the downside.
Process
- Leverage: total/net debt, debt/EBITDA, debt/capital - trend and vs. peers.
- Coverage: EBITDA/interest, (EBITDA - capex)/interest, FFO/debt - can cash flow cover obligations?
- Liquidity: cash, revolver availability, near-term maturities vs. cash generation (maturity wall).
- Cash flow durability: how stable/cyclical is FCF? Downside (bear-case) coverage matters most.
- Debt structure & covenants: secured/unsecured, maturity schedule, covenant headroom and triggers.
- Qualitative: business risk, industry, management, sponsor.
Output
- A credit summary: leverage/coverage/liquidity metrics (sourced), the maturity profile, covenant headroom,
downside-case coverage, and the key risks. An implied credit view (not a rating-agency rating).
Guardrails
- Metrics sourced from filings (
data-integrity); stress the downside, not just the base case.
- Distinguish your view from an official rating; add a disclaimer if it informs an investment decision.
