Credit Evaluation School - May 2023

Internal Use Only

Classification Point out all the reasons for classification

•Marginal or insufficient collateral •Poor or weak financial condition •Lack of a repayment plan •Past due status •Others?

Internal Use Only

Classification Example: Poor or Weak Financial Condition

ABC Corporation’s 12-31-x9 audited financial statements reflected TA of $1,200M, TL of $2,000M, and negative NW of $800M. Also reflected was GP of $2,000M, COGS of $1,000M, Operating Expenses of $1,200M, and Net Loss of $200M.

Pge 11