Credit Evaluation School eBook

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.

General Writeup Tips

• Use 6 P’s as guide • Detailed vs. Short Form vs. Bullet Point • Outline key points – keep it simple • Break up paragraphs • Include management’s comments & commitments made • See Guide Sheet handout