Digital Finance: Credit Analysis (Masters)

Unit Outline (Higher Education)

Level of Unit in Course

AQF Level(s) of Course

Level of Unit in Course

Introductory

Intermediate

Effective Term:

2025/05

Institute / School :

Institute of Innovation, Science & Sustainability

Unit Title:

Digital Finance: Credit Analysis (Masters)

Unit ID:

GPACC5009

Credit Points:

15.00

Prerequisite(s):

Nil

Co-requisite(s):

Nil

Exclusion(s):

Nil

ASCED:

081199

Other Change:

Brief description of the Unit

This project aims to prepare learners to excel in ‘Credit Analyst’ roles in banks, Non-Banking Financial Companies (NBFCs) and new digital finance companies. Team projects will be based on assessing the debt/loan funding requirements of a company for new capital expenditure. Working in teams of 4-5, learners will do an in-depth analysis of the sector and the individual company’s financial performance (solvency, profitability and liquidity), assess project cash flows, and arrive at a loan decision and pricing, based on the appropriate credit policy and guidelines.

Grade Scheme:

Graded (HD, D, C, P, MF, F, XF)

Work Experience Indicator:

No work experience

Placement Component: No

Supplementary Assessment:Yes

Where supplementary assessment is available a student must have failed overall in the Unit but gained a final mark of 45 per cent or above, has completed all major assessment tasks (including all sub-components where a task has multiple parts) as specified in the Unit Description and is not eligible for any other form of supplementary assessment

Course Level:

Learning Outcomes:

Knowledge:

K1.	Critically evaluate advanced financial performance metrics, including liquidity, profitability, and solvency, through comprehensive financial statement analysis.

K2.	Assess the role of credit analysis in complex lending and investment decisions, considering various risk factors and financial models.

K3.	Develop sophisticated financial forecasting models, integrating advanced techniques for cash flow estimation and scenario analysis.

Skills:

S1.	Conduct in-depth analysis of a company’s financial statements, including a detailed examination of assets, liabilities, equity, and their implications for financial health.

S2.	Synthesize and interpret complex financial data to generate comprehensive insights and make strategic recommendations.

S3.	Communicate advanced financial analyses and strategic recommendations effectively in written and oral formats, tailored to diverse audiences.

Application of knowledge and skills:

A1.	Evaluate and integrate advanced financial data to assess and forecast a company's financial health, efficiency and growth considering liquidity, profitability, and solvency within a broader economic context.

A2.	Prepare and present a comprehensive financial analysis report that provides in-depth strategic recommendations and actionable steps for complex decision-making within a corporate setting.

Unit Content:

Sprint 1 (2 Weeks)

Advanced Sector and Company Analysis

Teams will research and analyse the financial health of a given sector, focusing on advanced metrics such as debt coverage ratios, capital structure, and market conditions. A comparative sector analysis will be performed, culminating in a group presentation of findings.

Sprint 2 (2 Weeks)

In-Depth Company Financial Performance Analysis

Teams will conduct a detailed analysis of a given company's financial performance, including balance sheet analysis, liquidity ratios, profitability metrics, and solvency assessments. This analysis will be benchmarked against sector performance. Deliverables will include a team report and presentation.

Sprint 3 (2 Weeks)

Project Financial Feasibility Study and Cash Flow Modelling

Teams will build advanced financial models (e.g., Net Present Value, Internal Rate of Return) to assess the feasibility of a proposed project, with a focus on accurate cash flow forecasting. Deliverables will include an Excel-based financial model and a team presentation.

Sprint 4 (2 Weeks)

Credit Risk Analysis and Rating Simulation

Teams will simulate the process of internal and external credit ratings, using tools like Moody’s or S&P’s credit risk models. Teams will assess solvency, loan collateral quality, and provide a credit risk rating for a hypothetical company. Deliverables will include a rating report and presentation.

Sprint 5 (2 Weeks)

Capital Budgeting and Loan Structuring

Teams will apply capital budgeting techniques, including sensitivity analysis and scenario testing, to assess project risks and structure loans. They will also determine the appropriate loan covenants and terms based on risk assessment. Deliverables will include a detailed loan structuring report and team presentation.

Sprint 6 (2 Weeks)

Final Credit Analysis and Decision Report

Teams will consolidate their findings into a comprehensive credit analysis report, including recommendations for loan approvals, risk mitigations, and financial justifications. This final report will integrate all previous analyses and models. Deliverables will include a detailed report and a final presentation to a simulated board of directors.

Graduate Attributes:

Federation University recognises that students require key transferable employability skills to prepare them for their future workplace and society. FEDTASKS (Transferable Attributes Skills and Knowledge) provide a targeted focus on five key transferable Attributes, Skills, and Knowledge that are be embedded within curriculum, developed gradually towards successful measures and interlinked with cross-discipline and Co-operative Learning opportunities. One or more FEDTASK, transferable Attributes, Skills or Knowledge must be evident in the specified learning outcomes and assessment for each FedUni Unit, and all must be directly assessed in each Course.

FED TASK and descriptor		Development and acquisition of FEDTASKS in the Unit
FED TASK and descriptor		Level
FEDTASK 1 Interpersonal	Students at this level will demonstrate an advanced ability in a range of contexts to effectively communicate, interact and work with others both individually and in groups. Students will be required to display high level skills in-person and/or online in: • Using and demonstrating a high level of verbal and non-verbal communication • Demonstrating a mastery of listening for meaning and influencing via active listening • Demonstrating and showing empathy for others • High order skills in negotiating and conflict resolution skills\\ • Demonstrating mastery of working respectfully in cross-cultural and diverse teams.	1 - Yes
FEDTASK 2 Leadership	Students at this level will demonstrate a mastery in professional skills and behaviours in leading others. • Creating and sustaining a collegial environment • Demonstrating a high level of self -awareness and the ability to self-reflect and justify decisions • Inspiring and initiating opportunities to lead others • Making informed professional decisions • Demonstrating initiative in new professional situations.	1 - Yes
FEDTASK 3 Critical Thinking and Creativity	Students at this level will demonstrate high level skills in working in complexity and ambiguity using the imagination to create new ideas. Students will be required to display skills in: • Reflecting critically to generate and consider complex ideas and concepts at an abstract level • Analysing complex and abstract ideas, concepts and information • Communicate alternative perspectives to justify complex ideas • Demonstrate a mastery of challenging conventional thinking to clarify complex concepts • Forming creative solutions in problem solving to new situations for further learning.	1 - Yes
FEDTASK 4 Digital Literacy	Students at this level will demonstrate the ability to work competently across a wide range of tools, platforms and applications to achieve a range of tasks. Students will be required to display skills in: • Mastering, exploring, evaluating, managing, curating, organising and sharing digital information professionally • Collating, managing complex data, accessing and using digital data securely • Receiving and responding professionally to messages in a range of professional digital media • Contributing competently and professionally to digital teams and working groups • Participating at a high level in digital learning opportunities.	1 - Yes
FEDTASK 5 sustainable and Ethical Mindset	Students at this level will demonstrate a mastery of considering and assessing the consequences and impact of ideas and actions in enacting professional ethical and sustainable decisions. Students will be required to display skills in: • Demonstrate informed judgment making that considers the impact of devising complex solutions in ambiguous global economic environmental and societal contexts • Professionally committing to the promulgation of social responsibility • Demonstrate the ability to evaluate ethical, socially responsible and/or sustainable challenges and generating and articulating responses • Communicating lifelong, life-wide and life-deep learning to be open to the diverse professional others • Generating, leading and implementing required actions to foster sustainability in their professional and personal life	1 - Yes

	Learning Outcomes Assessed	Assessment Tasks	Assessment Type	Weighting
1.	K1, K2, S1, S2, A1, A2	Company financial analysis and performance vs. sector benchmarks	Team report and presentation	20-30%
2.	K2, K3, S1, S2, S3, A1, A2	Credit risk analysis and rating simulation	Rating report and presentation	20-30%
3.	K2, K3, S1, S2, S3, A1, A2	Final credit analysis report and decision	Comprehensive report and presentation	40-60%

Adopted Reference Style:

APA ()

Professional Standards / Competencies:

Standard / Competency