Credit Evaluation School - October 2023

Internal Use Only

Management’s Comments, Plans and/or Prospects Example – Management disagrees: This relationship is downgraded to Substandard based on apparent insufficient capacity to repay debt, collateral shortfall, no outside sources of income, and lack of meaningful guarantor support. Bank Management disagreed with the classification and stated that all payments have been made as agreed since returning to amortization last month. Management plans to continue to work with the borrowers until they return to profitability..

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Internal Use Only

GENERAL WRITEUP TIPS • Use the 6 P’s as a guide

• Detailed vs. short form vs. bullet point • Outline key points – keep it simple • Break up paragraphs (not one huge one) • Include management’s comments and any commitments made • See Guide Sheet handout

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