Your question is Corporate Counterparty Credit Risk Evaluation. Take a moment with it on the right.
Talk me through your thinking if you like. When you're confident, submit your answer and I'll grade it like a real screen (7/10 or better passes).
You are assessing a corporate counterparty before entering a risk-transfer transaction. The business team wants a clear view on whether the counterparty can meet its obligations over the life of the deal, and what terms or protections might be needed.
Walk me through how you would evaluate the credit risk of a corporate counterparty in a risk-transfer transaction.