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Municipal Bond Ratings: A Discriminant Analysis Approach

Published online by Cambridge University Press:  19 October 2009

Allen J. Michel
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Extract

The financial dilemmas faced by large municipalities, due in general to decreasing tax bases, increasing public services, inflationary pressure and in some cases fiscal irresponsibility, have brought increased attention to the subject of municipal bond ratings. In order to gain insight into those factors which are most significant in explaining the ratings, a set of financial ratios is investigated. Such ratios are frequently used to describe characteristics of the risk of municipal obligations. This paper attempts to determine if these ratios can be effectively used to predict ratings.

Type
Proceedings of 1977 Western Finance Association Meeting: Selected Conference Papers
Information
Journal of Financial and Quantitative Analysis , Volume 12 , Issue 4 , November 1977 , pp. 587 - 598
Copyright
Copyright © School of Business Administration, University of Washington 1977

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References

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