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Credit Risk Analyst

Title:
Credit Risk Analyst
Report to:
Chief Financial Officer
Locations:
Amsterdam, the Netherlands

Job Details

Description

 

 Summary of Job Description:

  •  Provide credit risk analysis of customers (lessees) of the engine leasing business including potential customers.
  •  In conjunction with relevant teams in the Company, provide credit related processes in closing of leasing transactions, periodic and ad-hoc credit risk management of the Company.
  •  Perform pricing and calculate economics of leasing and sale/trading transactions.

 

 Primary Job Functions (Credit Risk Analysis):

Credit Due Diligence for New Engine Leasing Transaction;

1)  Produce reports on credit risk analysis of each potential lessees from both quantitative and qualitative perspective to support Marketing campaign and the function of the Credit Department.

  • Produce credit analysis reports for each potential lessee as part of deal applications, and responsible for explanation and answers to relevant questions in the Commercial Committee of the Company and other deal approval processes.
  • Being part of Deal Team for each leasing transaction and reviewing each aircraft engine leasing transaction from credit risk perspective and support colleagues in other teams in their decisions process.

2)  Assigning Obligor Grade for each existing and potential lessee in line with the grading system of the Company, and liaise with Aircraft Credit Department (ACCD) of Sumitomo Mitsui Finance and Leasing Company (SMFL) on approvals of credit grade.

3)  As needed, perform onsite credit due diligence including credit interviews with potential lessees in cooperation with Sales and Marketing Team.

 

Credit Risk Management during Lease Term;

1)  Periodically review credit risk of existing lessees when 1) new financial information is released or obtained by the Company, and 2) any events as occurred which designate or imply deterioration of the credit status of the existing lessees.

  • Review of potential and new lessees include preparing and analyzing financial spreads of lessees’ financial statements to determine overall credit strengths and weaknesses as well as credit grade.
  • Identify and assess various airline/aviation industry trends, competitive market, and market risks to determine trends, growth and cyclical/seasonality of business and apply findings to credit review.

2)  Produce credit analysis memo for all existing lessees at least semi-annually and supporting the Company to maintain periodic Regional Credit and Portfolio Review (CPR).  As needed, contact lessee or Commercial Team representative of lessee to obtain additional information or explanation detail throughout the credit review process while coordinating with SVP Credit Risk.

3)  Work on credit risk related instructions and conditions assigned to the Company by ACCD in relation to new leasing transactions, change of conditions or CPR by conducting further analysis, creating reports or other actions required to close those instructions and conditions.

4)  Monitor existing lessees for any financial problems or signs of financial issues.

5)  Produce credit analysis memo for customers (lessees) as requested by Sales and Marketing Team or Planning Team.

6)  Coordinate, update, and support SVP Credit Risk in overall work management task and reports.

7)  Complete special projects as needed.

 

 Secondary Job Functions (Pricing Team):

Pricing for lease transactions;

1)  Run pricing for Sale & Lease Back (SLB) and secondary lease transactions taking following factors into consideration and calculate economics of the transactions, and provide support to establish the balance between Purchase Price, Rent and other important factors.

  ・ Cost of funds

  ・ Depreciation

  ・ Duration of lease

  ・ Residual value of engine

  ・ Third-party appraisal value of engine

  ・ Credit of lessee

  ・ Security package

  ・ Engine conditions including thrust, QEC configuration, stand & bag

  ・ Cost of insurances

  ・ Expected utilization of engine

  ・ Lease and trading profit

  ・ Profitability measured by ROA and IRR

2)  According to the lease pricing determined, calculate and provide following terms and conditions of the lease.

  ・ Agreed value for insurance

  ・ Lease rent adjustment factor and reference

3)  According to the lease pricing determined, calculate and provide following information for internal deal discussion.

  ・ Investment to value (ITV)

  ・ Stress case scenarios

  ・ Profit/loss profile

 

Pricing for sale/trading transactions;

1)  Run pricing for engine sale/trading transactions (with and without lease attached) taking following factors into consideration and calculate economics of the transactions, and provide support to establish the balance between Sale Price and other important factors.

  ・ Engine condition including remaining life, thrust, QEC configuration, stand & bag

  ・ Economics of engine attached to lease including running profit and cost

  ・ Running cost of off-lease engine

  ・ Remaining tenor of engine attached to lease

  ・ Third-party appraisal value of engine

  ・ Cash flow and economics from buyer’s perspective

  ・ Net Book Value (NBV) of engine

  ・ Trading profit

2)  According to the sale/trading pricing determined, calculate and provide following terms and conditions of the sale/trading.

  ・ Purchase price adjustment factors

3)  According to the sale/trading pricing determined, calculate and provide following information for internal deal discussion.

  ・ Profit/loss profile

  ・ Lifecycle return

  ・ Comparison with originally anticipated return

 

Maintain Pricing Model;

1)  Update, modify an adjust the current and future engine market value assumptions referring to the latest third-party appraisal values.

2)  Update, modify an adjust the cost assumptions of maintenance (shop visit) and LLP together with assumptions of future cost escalation of those working with Product Support Team.

3)  Work with Planning Team to develop pricing models for new products.

 

Requirements

  •  Either minimum 1) 3 years aviation experience with aircraft or engine Leasing experience or 2) 3 years of credit risk analysis experience in financial institution
  •  Intermediate understanding of financial statements and key performance indicators of a company.  An ability to form an independent view on airlines and markets they operate.
  •  Strong writing skills and comfortable producing reports through an analysis of company’s financial and other credit and operational metrics.
  •  Strong communication skills and ability to engage with stakeholders at a senior level.
  •  Proficient in MS Office tools and comfortable working in Excel and financial spreading tools.
  •  Ability to meet tight deadlines and manage multiple high priority projects.
  •  High ethical standards and willingness to learn about the leasing industry.
  •  Full Professional English in both written and communication.