The determinants of Australian corporate credit ratings

Mirkovic, Alexsander Stevo. (2003). The determinants of Australian corporate credit ratings Honours Thesis, School of Business, University of Queensland.

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Author Mirkovic, Alexsander Stevo.
Thesis Title The determinants of Australian corporate credit ratings
School, Centre or Institute School of Business
Institution University of Queensland
Publication date 2003
Thesis type Honours Thesis
Total pages 97
Language eng
Subjects 1502 Banking, Finance and Investment
Formatted abstract
This thesis investigates the financial and non-financial determinants of issuer credit ratings in the Australian market. In particular, it uses an ordered probit methodology to describe the key financial ratios over the sample period from 1995 through to 2002. The incremental informativeness of equity risk beta and industry concentration are tested along with the trend of credit rating agencies to adopt more stringent rating standards. This thesis finds that interest coverage, profitability and long-term debt leverage all displayed a significant explanatory relationship with credit ratings. Industry concentration added to the informativeness of the model while equity beta did not. Furthermore, the results suggest that rating agencies have adopted more stringent rating standards over time, consistent with the findings of Blurne, Lim and Mackinlay (1998).

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Created: Fri, 26 Nov 2010, 11:29:49 EST by Muhammad Noman Ali on behalf of The University of Queensland Library