Financial indicators and their effect on credit rating

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F61989100%3A27510%2F10%3A86076421" target="_blank" >RIV/61989100:27510/10:86076421 - isvavai.cz</a>
Result on the web
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DOI - Digital Object Identifier
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Result language
angličtina
Original language name
Financial indicators and their effect on credit rating
Original language description
The paper examines the role of various financial variables on credit rating assessment by using discriminant analysis in the evidence of Central and Eastern European countries. The main results of the paper are that there are several main financial variables with the highest impact on credit rating: return on assets, total debt to total assets, interest cover and return on shareholders' equity. It is evident that capital structure, profitability and the firm's ability to meet interest payments are the most important variables for a credit rating assignment. These variables are simply-to-use and often publically available. Thus, we obtained a useful instrument that can be applied in the first stage of accessing companies without agencies' rating.
Czech name
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Czech description
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Type
J<sub>x</sub> - Unclassified - Peer-reviewed scientific article (Jimp, Jsc and Jost)
CEP classification
AH - Economics
OECD FORD branch
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Publication year
2010
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

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