In this paper we succinctly outline the modeling approach of Moody's for private firm default prediction. The processes of transforming ratios, weighting the transformations, and mapping to a default probability are examined. Accounting ratios in the US, Canada, and Australia are compared and...

Department: Economics.

Investors in commercial paper (CP) markets include money market mutual funds, corporate treasurers, state and local governments, and commercial banks and their trust departments. The obligors in the market are predominantly large and highly creditworthy corporations. The credit risks faced by CP...