A Comparative Analysis of Value Line, Standard and Poor's and Moody's Industiral Bond Ratings
نویسنده
چکیده
This paper compares and contrasts financial strength ratings assigned by Value Line, Standard and Poor's, and Moody's. All of these rating agencies use modified ratings. When modifiers are considered, these agencies agree between 85 97 percent of the time. A model using stock market information as well as liquidity, leverage, activity and profitability ratios is presented. Cronbach's alpha, a measure of reliability, is calculated for each rating class, and the entire data set.
منابع مشابه
Determinants and Impact of Sovereign Credit Ratings
n recent years, the demand for sovereign credit rat-ings—the risk assessments assigned by the credit rating agencies to the obligations of central govern-ments—has increased dramatically. More governments with greater default risk and more companies domiciled in riskier host countries are borrowing in international bond markets. Although foreign government officials generally cooperate with the...
متن کاملMunicipal Bond Risk Ratings
Thesis Statement In recent years, the legitimacy of bond ratings given by top rating agencies has been under extreme scrutiny by the general public and the government. The faith and trust that the public puts into credit rating agencies such as Standard & Poor's, Moody's, and Fitch is based on the notion that they will publically assign unbiased risk ratings which truly reflect the creditworthi...
متن کاملCredit ratings and cross-border bond market spillovers ¬リニ
This paper studies spillovers across sovereign debt markets in the wake of sovereign rating changes. We compile an extensive dataset covering all announcements by the three major agencies (Standard & Poor's, Moody's, Fitch) and daily sovereign bond market movements of up to 73 developed and emerging countries between 1994 and 2011. To cleanly identify the existence of spillover effects, we perf...
متن کاملDouble Ensemble Approaches to Predicting Firms' Credit Rating
Several rating agencies such as Standard & Poor's (S&P), Moody's and Fitch Ratings have evaluated firms’ credit rating. Since lots of fees are required by the agencies and sometimes the timely default risk of the firms is not reflected, it can be helpful for stakeholders if the credit ratings can be predicted before the agencies publish them. However, it is not easy to make an accurate predicti...
متن کاملChelan County Public Utility District No. 1, Washington; Utility, Retail Electric
OUTLOOK: NEGATIVE Rationale Standard & Poor's Ratings Services revised its rating outlook to negative from stable on Chelan County Public Utility District (PUD) No. 1, Wash.'s hydroelectric consolidated system revenue bonds. At the same time, Standard & Poor's affirmed the 'AA' rating on the bonds and assigned its 'AA' rating to the district's $147 million electric revenue bonds, series 2004. T...
متن کامل