The 2019 Rating and Pricing MLT Commercial Risks Specialist Meeting will take place on 25-26 March, in Washington DC, hosted by USEXIM.
For visa information, please check the Venue, visa and hotel tab. The one off participation fee for the event is EUR 260 per delegate.
CASE STUDIES
As the meeting will focus on exchange of expertise and actual underwriting and risk assessment, Members and delegates are asked to rate and calculate price for 4 selected transactions in advance to the meeting (by no later than 20 March 2019) and exchange views at the meeting on how and why did they arrived to a certain result. You can find the case files and the MS Word format response template under 'Meeting documents' tab. The structure of the case file response template is the same for all cases.
Case 1: a wind park with an SPV located in Sweden (project finance)
Case 2: sale of textile production machinery, where the buyer, the borrower and the guarantor are located in 3 different countries (corporate risk),
Case 3: an oil shale fired power plant in Jordan (project finance),
Case 4: a telecom deal, involving assessment of potential Better Than Sovereign (BTS) rating, and Turkish country risk implications on rating and pricing (corporate risk)
Please complete the case files as a preparation to the meeting, by clicking to the following links, rating and pricing each case:
- wind park in category 0 country (project finance):
++ insurance
++ guarantee
- textile production machinery with challenging holding structure (corporate risk):
++ insurance
++ guarantee
- oil shale fired power plant (project finance):
++ insurance
++ guarantee
- a telecom deal, with BTS obligor (corporate risk):
++ insurance
++ guarantee
OBJECTIVE
The objective of this Specialist Meeting will be for participants to better understand how export credit agency (ECA) colleagues in various public institutions rate (classify) and price medium long term (MLT) commercial risks, through general and breakout discussions. This includes explanation of external ratings, comparison of institutional practices and discussion on different aspect of the process per classic buyer risk, as well, as project finance. At this time, the meeting will dedicate a separate solely on pricing.
FORMAT
This Specialist Meeting will mix both large group sessions and peer-to-peer small group discussions, where the sharing of experiences on how to apply MLT risk classifications and pricing methods will be encouraged.
Please note that pre-meeting reading as well as case study homework and submissions will be required in advance of the meeting. As part of that, participants are required to analyse, rate and price commercial risk buyer credit cases, either themselves or with the help of their colleagues in their respective ECA. This homework will take place in advance of the meeting, with an aim to gather the view of how different ECAs would assess and price the different cases. These cases and the associated rating and pricing will then be discussed in depth in small peer-to-peer groups in Washington. The due date to submit the advanced homework is early March 2019.
At the meeting, the number of group presentations or lectures will be limited in order to allow a maximum amount of time for interactive peer-to-peer work. This work will deepen the understanding of participants on how colleagues in other ECAs facing the same commercial risk classification and pricing challenges work, should help identify best practices and should converge ECA pricing practices.
WHO SHOULD ATTEND
This Specialist Meeting, the fourth of its kind, will continue the detailed discussion on rating and pricing practices, therefore it is strongly suggested that participants with sufficient, tangible, operational experience attend. This may include candidates such as:
- - Heads of MLT Underwriting, Credit Risk Analysis and/or Risk Management
- - Underwriters
- - Pricing Specialists
As the peer-to-peer small group discussions are to an extent training in nature, colleagues with lesser operational experience but with the ability and willingness to actively take part in the discussions, are still encouraged to participate.
Please note that direct lending practices will not be specifically addressed within the agenda but the opportunity to network with colleagues from ECAs with direct lending arms will be facilitated.