The market has devised a more detailed public utility commercial paper rating scherre than presently exists at the major rating bureaus. This stuiy identifies the key financial variables that contribute to market rating differences. A multiple discriminant model is developed that employs these variables to replicate not only agency ratings, but also the more precise market ratings. The empirical results verify the contention that public utility paper issuers can be effectively classified into more distinct quality categories than are currently provided by the agency raters.
market ratings, public utilities, securities, commercial paper, yields
The files in this collection are protected by copyright law. No commercial reproduction or distribution of these files is permitted without the written permission of Southern Methodist University, Cox Business School. These files may be freely used for educational purposes, provided they are not altered in any way, and Southern Methodist University is cited. For more information, contact email@example.com.
Peavy, III, John W. and Edgar, S. Michael, "Replicating Electric Utility Short-term Credit Ratings" (1982). Historical Working Papers. 33.