Corporate Credit Memo Skill

Produces full institutional-grade Credit Application Memoranda (20–30+ pages) from uploaded

financial documents and user-provided deal parameters. Output follows the 8-section structure

used by major international banks, with all financial ratios calculated and flagged where data

is insufficient.

Step 1 — Intake & Clarification

When triggered, immediately check what the user has provided. Do NOT ask multiple questions

at once. Follow this sequence:

1a. Check for uploaded files

If annual reports / financial statements are attached → proceed to Step 2.

If nothing is attached, ask:

> "Please upload the company's annual reports (last 2–3 years, PDF or Word). If you don't

> have them, paste the key financials and I'll work with those."

1b. Collect deal parameters (ask once, in a single message)

Once files are confirmed, ask the user to confirm or provide:

1. Borrower legal name
2. Facility type & amount (e.g. GBP 50m term loan / USD 120m revolving credit)
3. Tenor (e.g. 3 years, 5 years)
4. Purpose of loan (working capital / capex / refinancing / acquisition)
5. Security / guarantee structure (if known)
6. Repayment profile (bullet / amortising / quarterly)
7. Pricing (if known — e.g. SONIA + 250bps)
8. Lending bank / branch name
9. Any internal policy or industry classification to reference?
   (If unsure, leave blank — I will note it as [TO BE CONFIRMED])

Tell the user:

> "Items marked [TO BE CONFIRMED] will be flagged in the report for your team to complete —

> including RAROC, internal limits, and any policy-specific thresholds."

Step 2 — Document Extraction

Read all uploaded files carefully. Extract and organise:

From financial statements (P&L, Balance Sheet, Cash Flow):

• 3 years of annual data + latest interim period if available
• All line items needed for ratio calculation (see references/financial-ratios.md)
• Auditor name and opinion type (unqualified / qualified / emphasis of matter)
• Reporting currency and any FX translation notes

From the annual report narrative:

• Business description, segment breakdown, revenue mix
• Key customers and suppliers (concentration risk)
• Management team and ownership structure
• Geographic footprint
• Material litigation, contingent liabilities, off-balance-sheet items
• ESG disclosures if present

Flag clearly any data that is:

• Missing → label [DATA NOT AVAILABLE — please provide]
• Restated vs prior year → note the restatement
• Unaudited → label [UNAUDITED]

Step 3 — Research (Web Search)

Use web search to supplement document data for:

• Industry overview: market size, growth rate, cycle positioning
• Regulatory / policy environment relevant to the borrower's sector
• Competitive landscape: 2–3 named peers with approximate market share
• Recent news on the company (last 12 months): M&A, rating actions, management changes
• Macroeconomic context relevant to the jurisdiction and sector

Do NOT fabricate specific figures. If web search returns insufficient data, note:

> "[Industry data limited — recommend analyst review / Bloomberg supplement]"

Step 4 — Calculate Financial Ratios

Read references/financial-ratios.md for all formulas and flag logic.

Calculate every ratio for each available year. Apply the following flag rules:

• ✅ Calculated successfully → show figure
• ⚠️ Calculated but at borderline threshold → show figure + note
• 🔲 Data insufficient → show [N/A — data required]
• 📋 Requires internal input → show [TO BE CONFIRMED — internal policy]

RAROC and internal capital allocation are always [TO BE CONFIRMED].

DSCR denominator must match the proposed repayment schedule — confirm with user if unclear.

Step 5 — Draft the Credit Memo

Read references/credit-memo-structure.md for the full 8-section structure and

content requirements for each section.

Drafting principles:

• Write in formal institutional English — consistent with major UK/international bank standards
• Tone: analytical, direct, no marketing language
• Every material statement should be traceable to either the uploaded documents or web search
• Clearly distinguish facts from analytical judgements
• Use tables for all financial data — never prose for numbers
• Section headers must match the structure in references/credit-memo-structure.md exactly
• Flag all [TO BE CONFIRMED] items inline — do not omit them or leave blank
• Do not invent internal policy figures (hurdle rates, limits, RWA) — always flag these

Risk section (Section 6):

Read references/risk-framework.md before drafting.

Assign a risk rating (Low / Medium / High) for each risk category with a one-line rationale.

This section reflects the analytical approach expected of a senior risk function,

consistent with PRA supervisory expectations for credit risk governance.

Disclaimer:

Append the standard disclaimer from assets/disclaimer.md at the end of every report.

Step 6 — Output as Word Document (.docx)

Generate the final report as a formatted .docx file using the docx skill conventions:

• Font: Arial throughout
• Colour scheme: dark navy headers (#1F4E79), mid-blue subheadings (#2E75B6)
• All financial tables: dark navy header row, alternating white/light-blue rows
• Info tables (deal terms, company details): two-column label/value format
• Risk rating boxes: colour-coded text (green=Low, amber=Medium, red=High)
• Page header: "Credit Application Memorandum | Confidential — Internal Use Only"
• Page footer: document date + page number
• Cover page: borrower name, facility type, amount, date, classification label

Present the .docx file to the user when complete.

Also offer a brief verbal summary of the key credit highlights and top 3 risks.

Quality Checklist (run before presenting output)

Before finalising, verify:

• [ ] All 3 years of financials extracted and populated in tables
• [ ] Every ratio in references/financial-ratios.md either calculated or flagged
• [ ] No internal policy figures invented (RAROC, RWA, limits)
• [ ] Risk section has a rating for each of the 7 categories
• [ ] All [TO BE CONFIRMED] items visible and not hidden
• [ ] Disclaimer appended
• [ ] Document is .docx format, not markdown

Handling Edge Cases

Listed company: Extract financials from uploaded annual report. Use web search for

stock performance context and peer comparison. Note exchange and ticker.

Unlisted / private company: Flag absence of public ratings. Rely on audited accounts.

Note that valuation of pledged equity (if any) requires independent appraisal.

Holding company borrower / SPV: Distinguish between holdco and opco financials.

Analyse guarantor separately. Note structural subordination risk.

Insufficient financials (only 1 year available): Complete what is possible.

Note that trend analysis is limited and recommend additional data before credit approval.

Chinese-language source documents: Extract data from tables regardless of language.

For narrative sections, translate key disclosures as needed. Note source language.

M&A / acquisition finance: Produce pro-forma combined financials. Separate target

and acquirer analysis. Reference references/credit-memo-structure.md Section 1 addendum

for transaction analysis structure.