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This note outlines a repeatable commercial credit framework designed to preserve capital across cycles. The approach integrates borrower analysis, asset risk, cash flow durability, and governance. Emphasis is placed on stressed metrics, covenant design, and post-close monitoring to identify early warning signals. The framework is applicable across CRE, private banking, and professional segments, with risk-based pricing aligned to leverage, tenor, and complexity.

Purpose and Scope
Define a repeatable commercial credit framework focused on capital preservation and
downside control.
Applicable across CRE, private banking, and professional segments.

Borrower Analysis
l Global cash flow assessment across operating entities and holdings.
l Net worth verification with liquidity segmentation.
l Sponsor track record and execution risk assessment.

Asset and Collateral Analysis
l Property type risk weighting and market liquidity.
l Loan-to-value discipline with stressed valuation sensitivity.
l Collateral enforceability and legal structure review.

Cash Flow and Debt Service
l Normalized NOI construction and stress testing.
l DSCR targets by asset class and cycle position.
l Covenant design aligned to early warning signals.

Structuring and Pricing
l Risk-based pricing incorporating leverage, tenor, and complexity.
l Amortization and maturity aligned to asset cash flow.
l Mitigants: guarantees, reserves, and covenants.

Approval and Monitoring
l Independent credit adjudication and exception governance.
l Post-close monitoring cadence and trigger-based reviews.