Corporate Bond Credit Risk Calculator

Assess a corporate bond’s credit risk and investment safety with our Expected Loss calculator

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Calculate Corporate Bond Credit Risk

Enter financial details from financial statements and bond terms to estimate Expected Loss and assess investment safety.

Bond face value or outstanding principal from bond terms
Total liabilities from Statement of Financial Position
Earnings Before Interest, Taxes, Depreciation, Amortization
Interest expenses from Statement of Comprehensive Income
Cash, receivables, and short-term assets
Short-term obligations
Total assets from Statement of Financial Position
From Statement of Cash Flows
1-year forecasted EBITDA
Annual GDP growth from Bank of Ghana
Annual inflation from Bank of Ghana
Pledged assets for the bond
Discount factor, e.g., 0.7 for real estate
Cash and cash equivalents
Proportion of liquid assets available
Non-collateral assets, e.g., receivables
Percentage of other assets recoverable
Bond priority, e.g., 0.9 for senior secured
5-year average recovery rate for the industry
Inventory value for Quick Ratio
Proportion of recovery lost to costs
Years to recover assets, e.g., 1–3
Risk-free rate or cost of capital, e.g., 0.05

How to Use the Corporate Bond Credit Risk Calculator

Follow these steps to assess a corporate bond’s credit risk and determine if it’s safe for investment.

  1. Enter Issuer Details

    Provide the company’s name (e.g., Unilever Ghana PLC) and sector (e.g., Manufacturing).

  2. Input Financial Metrics

    Enter Total Debt, EBITDA, Interest Paid, Current Assets, Current Liabilities, Total Assets, Cash Flow from Operations, and Inventory from Q1 2025 financial statements.

  3. Provide Forward-Looking and Macro Data

    Input Projected EBITDA (1-year forecast) and macroeconomic data (GDP Growth Rate, Inflation Rate) from sources like Bank of Ghana.

  4. Enter Bond Recovery Parameters

    Input Collateral Value, Collateral Haircut, Liquid Assets, Liquidity Weight, Other Recoverable Assets, Asset Recovery Rate, Seniority Adjustment, Industry Recovery Factor, Recovery Cost, Time to Recovery, and Discount Rate from bond terms or industry data.

  5. Calculate and Interpret

    Click “Calculate” to compute Expected Loss, financial ratios, and stress test results. Review the recommendation to decide if the bond is suitable for investment.

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