part 2 term project

8/20/2019 Part 2 Term Project

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EF5340 Credit Risk Management

Part number 2(a) to 2(e)Student number 50317435Student name SO TSZ KWANFie name

!F5340 SO TSZKWAN Part 2"

term #ro$e%t&do%'

Want to #reent #ro$e%t No

Declaration

*a+e read and undertood t*e rue on %*eatin,"

#a,iarim and a##ro#riate re-eren%in, a outined in t*e

uni+erit. re,uation&

de%are t*at

• t*e /or %ontained in t*i term #ro$e%t re#ort i m.

o/n" une ot*er/ie a%no/ed,ed and

• no ubtantia #art o- t*e /or ubmitted *ere *a

ao been ubmitted b. me in ot*er aement -or

t*i or #re+iou de,ree %oure&

undertand t*at i- *a+e +ioated an. uni+erit. rue in

reation to #a,iarim" *a be ub$e%t to t*e di%i#inar.

a%tion -rom t*e uni+erit.&



Completion instructions

1& Part 2 o- t*e term #ro$e%t mut be %om#eted in t*e -ormat et out in t*i i%roo-t

Word -ie (A4" in,e #a%e" one in%* mar,in" Time Ne/ oman" 12 -ont ie) and t*e

ao%iated i%roo-t !'%e -ie&

2& Peae end t*e %om#eted Word and !'%e - ie to e6mai a%%ount .at-aiam26

%8m.&%it.u&edu&* b. 1159 #m onda. 7 ar%* 201: /it* .our ;it.< tudent e6mai

a%%ount&

3& Peae ee# t*e ubmiion e6mai in .our ;it.< tudent e6mai a%%ount unti 30 =une

201: a a #roo- o- ubmiion&

4& - .ou are not abe to ubmit Part 2 o- t*e term #ro$e%t b. 1159 #m onda. 7 ar%*

201: due to e'tenuatin, %ir%umtan%e u%* a ine" *o#itaiation" a%%ident" -ami.

berea+ement or ot*er un-oreeeabe eriou #erona or emotiona %ir%umtan%e and .ou

re>uet -or ate ubmiion o- Part 2 o- t*e term #ro$e%t" .ou mut %om#ete an a##i%ation toee t*e a##ro+a -rom t*e ?raduate S%*oo a%%ordin, to t*e ,uideine on t*e -oo/in,

uni+erit. /eb #a,e

*tt#@@///&,&%it.u&edu&*@tudent@t#,@aement@ine

5& An. ubmiion meetin, t*e -oo/in, %riteria /i be %ore at 0

• re%ei+ed a-ter 1159 #m onda. 7 ar%* 201:

• not t*rou,* t*e ;it.< tudent e6mai a%%ount

•/it*out !F5340 B CAST NA! B FST NA! a t*e -irt #art o- t*e -ie

• t*e Word or !'%e -ie i mied

• in an. -ie -ormat ot*er t*an Word and !'%e and

• t*e imiarit. inde' o- t*e Word -ie more t*an 50" a identi-ied b. t*e ;it.<D

Turnitin #a,iarim dete%tion #ro,ram

:& On. t*e -irt ubmiion /i be %ored&

7& An. ubmiion de+iate -rom t*ee tem#ate and@or re>uirement /i be ub$e%t to

%ore dedu%tion&

E& Part 2 o- t*e term #ro$e%t a%%ount -or 22&5 out o- 50 o- t*e %oure/or&

9& ou mut #a bot* t*e %oure/or and e'amination in order to #a t*e %oure

!F5340 ;redit i ana,ement&

Pa,e 2 o- 21



Marking scheme

10& Se%tion (b) to (e) o- t*e term #ro$e%t are %ored a%%ordin, to t*e -oo/in, %riteria

Section Maximum score (!

Summar. to an/er 1Tabe and %om#arion 1

?ra#* and %*art 1

Ge%ri#ti+e e'#anation and ana.i 1

Preentation and or,aniation 1

11& An. e%tion not meetin, t*e #e%i-i% %riteria in RED /i be %ored at 0&

12& !a%* ban #a,e in t*e re#ort /i reut 1 dedu%tion&

Credit rating scale

13& !;A Pu %redit ratin, %ae mut be -oo/ed t*rou,*out t*e term #ro$e%t

Credit "ualit# Rating $D (!

Excellent %%% 0&0100

&ood %% 0&0333

% 0&0E34

''' 0&3345

Moderate '' 2&5:52

' 7&1:E2'ad CCC 15&:5:7

CC 29&5270

C :3&1597

Pa,e 3 o- 21



$art (a!

Huetion

W*at are t*e %redit ratin, o- t*e -i+e ited %om#anie a at end 2014" 2013 and 2012I

An/er (2&5)

T*e -oo/in, tabe it t*e %redit ratin, o- t*e -i+e %om#anie a at end 2014" 2013 and

2012&

Compan# Credit rating

(%%) %) ''') '') ') CCC) CC* C!

0+4 0+3 0+

3 ;om#an. AAA AAA AAA

NK! n% AAA AAA AAA

JP n%&

Tria ;or#oration AAA

Ameri%an A'e L anu-a%turin," n%& AA

Pa,e 4 o- 21



$art (,!

Huetion

W*at are t*e PG" etimated b. t*e ertonD %or#orate de-aut mode" o- t*e -i+e ited

%om#anie a at end 2014" 2013 and 2012I

Summar. to an/er (1)

T*e -oo/in, tabe it t*e PG" etimated b. t*e ertionD %or#orate de-aut mode" o- t*e

-i+e %om#anie a at end 2014" 2013 and 2012&

Compan# $ro,a,ilit# o- de-ault (!

0+4 0+3 0+

3 ;om#an. 0 0 0

NK! n% 0 0 0

JP n%& 0&0940 4&5744 5&91E2

Tria ;or#oration 0&124E 0&0002 0&1214

Ameri%an A'e L anu-a%turin," n%& 0&0937 0&E502 :&3E:9

Pa,e 5 o- 21



$art (,!

?ra#* and %*art (1)

(inimum one -u #a,e and ma'imum t/o -u #a,e)

Pa,e 7 o- 21



$art (,!

Ge%ri#ti+e e'#anation and ana.i (1)


Pa,e E o- 21



$art (c!

Huetion

W*at are t*e AtmanD Z6%ore o- t*e -i+e ited %om#anie a at end 2014" 2013 and 2012I


T*e -oo/in, tabe it t*e AtmanD Z6%ore o- t*e -i+e %om#anie a at end 2014" 2013

and 2012&

Compan# %ltman2s score

0+4 0+3 0+

3 ;om#an. :&770EE5 :&13:93: 4&97203E

NK! n% E&0115 7&9550 E&5EE0

JP n%& 1&97270: 1&797:E3 1&134034

Tria ;or#oration 0&920479 1&10:901 0&917020

Ameri%an A'e L anu-a%turin," n%& 1&905E00 1&:45320 1&325414

Pa,e 9 o- 21



$art (c!

Tabe and %om#arion (1)


Compan# Ma.or calculations 0+4 0+3 0+

3 ;om#an. + 5&3520 5&0301 3&20:3

0&2031 0&15:0 0&2193

3 1&099: 0&9::2 0&905:

4 0&2297 0&1999 0&1925

5 1&019: 0&9201 0&EE27

%ltman2s score :&7709 :&13:9 4&9720

NK! n% + E&2712 7&9E:1 E&E577

0&4::2 0&5510 0&5149

3 0&2:20 0&3203 0&3:134 0&190: 0&1E5: 0&1947

5 1&4951 1&4427 1&50E:

%ltman2s score E&0115 7&9550 E&5EE0

JP n%& + 0&35:E 0&2319 0&11:4

0&0:21 0&045E 0&03:5

3 0&2E2: 0&2419 0&1979

4 0&0:35 0&0:1: 60&1097

5 1&0799 1&0:27 1&10:5

%ltman2s score 1&9727 1&7977 1&1340

Tria;or#oration

+ 1&0540 1&993E 1&2:23 0&1497 0&1949 0&1:E5

3 60&13:5 60&2270 60&3279

4 0&0:90 0&0EE7 0&0:92

5 0&9021 1&0:75 1&1207

%ltman2s score 1&7497 2&4715 1&E4E:

Ameri%an A'e

L

anu-a%turin,"

n%&

+ 0&5512 0&5224 0&2E:1

0&139: 0&1115 0&0947

3 60&0097 60&057: 60&09:2

4 0&0E54 0&0::E 0&04:4

5 1&140: 1&0594 1&022:%ltman2s score 1&905E 1&:453 1&3254

Pa,e 10 o- 21



$art (c!

?ra#* and %*art (1)


Pa,e 11 o- 21



$art (c!



Pa,e 12 o- 21



$art (d!

Huetion

;on%ude t*e o+era %redit >uaitie" %redit ratin, and PG o- t*e -i+e ited %om#anie&


T*e -oo/in, tabe it t*e o+era %redit >uaitie" %redit ratin, and PG o- t*e -i+e ited

%om#anie&

Compan# 61erall

Credit "ualit# Credit rating $D (!

3 ;om#an. !'%eent AAA 0

NK! n% !'%eent AAA 0

JP n%& oderate 3&503E

Tria ;or#oration ?ood A 0&0E17

Ameri%an A'e L

anu-a%turin," n%&

oderate 2&43E:

Pa,e 13 o- 21



$art (d!



Compan# 7ear Credit

"ualit#

Credit

rating

$D

(!

%ltman2s

score

3 ;om#an.

2014 !'%eent AAA 0 :&770EE5

2013 !'%eent AAA 0 :&13:93:

2012 !'%eent AAA 0 4&97203E

O+era !'%eent AAA 0 5&959953

NK! n% 2014 !'%eent AAA 0 E&2712

2013 !'%eent AAA 0 7&9E:1

2012 !'%eent AAA 0 E&E577

61erall !'%eent AAA 0 E&371:JP n%& 2014 ?ood 0&0940 1&97270:

2013 oderate 4&5744 1&797:E3

2012 oderate 5&91E2 1&134034

61erall oderate 3&52E9 1&:34E0E

Tria

;or#oration

2014 ?ood 0&124E 1&749715

2013 !'%eent AAA 0&0002 2&471534

2012 ?ood 0&1214 1&E4E597

61erall ?ood A 0&0E21 2&0232E2

Ameri%an A'e

Lanu-a%turin,

" n%&

2014 ?ood AA 0&0937 1&905E00

2013 oderate 0&E502 1&:453202012 oderate :&3E:9 1&325414

61erall oderate 2&443: 1&:25511

;redit >uait. in M?ood" Moderate or Mad

Pa,e 14 o- 21



$art (d!

?ra#* and %*art (1)


Pa,e 15 o- 21



$art (d!



Pa,e 1: o- 21



$art (e!

Huetion

!a%* o- t*e -i+e ited %om#anie a##roa%* .our ban to a##. a t*ree6.ear term oan o- ;N

100 mn but .our ban %an on. end u# to ;N 300 mn more t*i .ear& e%ommend aendin, trate,. u# to ;N 300 mn" tain, into a%%ount t*e %redit ri -a%tor" %redit ri

meaure and ot*er ree+ant >uaitati+e and >uantitati+e -a%tor" aumin, t*at no %redit ri

%ontro i ued&


T*e -oo/in, tabe et out t*e re%ommended endin, trate,. to t*e -i+e ited %om#anie"

/it*out an. %redit ri %ontro in%or#orated

Compan# $rincipal

(C87 mn!

Maturit#

(7ear!

Claim priorit#

during li"uidation

3 ;om#an.

NK! n%

JP n%&

Tria ;or#oration

Ameri%an A'e L

anu-a%turin," n%&

Pa,e 17 o- 21



$art (e!



Compan# Ma.or calculations 9alue

3 ;om#an. $rincipal (C87 mn!

:&D (!

$D (!

RM (#ears!

E: o- principal (C87 mn!

NK! n% $rincipal (C87 mn!

:&D (!

$D (!

RM (#ears!E: o- principal (C87 mn!

JP n%& $rincipal (C87 mn!

:&D (!

$D (!

RM (#ears!


Tria ;or#oration $rincipal (C87 mn!

:&D (!

$D (!

RM (#ears!E: o- principal (C87 mn!

Ameri%an A'e L

anu-a%turin," n%&

$rincipal (C87 mn!

:&D (!

$D (!

RM (#ears!


Pa,e 1E o- 21



$art (e!

?ra#* and %*art (1)


Pa,e 19 o- 21



$art (e!



Pa,e 20 o- 21



Re-erences

+* nter6ba% rate

(*tt#@@///&,oba6rate&%om@interet6rate@ibor@ameri%an6doar@2014&a#')

http://www.global-rates.com/interest-rates/libor/american-dollar/2014.aspx

http://www.global-rates.com/interest-rates/libor/american-dollar/2014.aspx

part 2 term project

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