Ratio Scoring : An Application to Ratios Specified by Standard & Poor’s to be Key Input to Determining Credit Ratings

We create a simple method to score ratios based on relative performance. As an example, we apply the technique to ratios identified by Standard & Poor's as key inputs to determining credit ratings. Our results show that relative scoring produces information not captured by typical ratio analysis employed to set credit ratings. In the case of Standard & Poor's credit ratings, our ratio scoring technique predicts future rating changes better than the underlying raw ratios

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Year of publication:	2011
Authors:	Strother, T. Shawn
Other Persons:	Tibbs, Samuel L. (contributor)
Publisher:	[2011]: [S.l.] : SSRN
Subject:	Kreditwürdigkeit \| Credit rating \| Theorie \| Theory \| Kreditrisiko \| Credit risk

Extent:	1 Online-Ressource (27 p)
Type of publication:	Book / Working Paper
Language:	English
Notes:	In: Journal of Applied Finance, Forthcoming Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments March 17, 2011 erstellt
Classification:	G10 - General Financial Markets. General ; G12 - Asset Pricing ; G14 - Information and Market Efficiency; Event Studies ; G20 - Financial Institutions and Services. General
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10013128299