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What drives rating agencies’ credit scoring models? An industry level analysis

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Detalhes bibliográficos
Resumo:This thesis investigates the determinants of Moody’s credit ratings in seven industries, focusing on the role of firm size. Using factor analysis and regression modeling, the study identifies key financial factors that influence creditworthiness and explores the potential to simplify Moody’s credit rating methodology. The findings validate that firm size is a significant predictor, particularly in capital-intensive sectors such as Oil and Gas and Manufacturing, while qualitative factors remain critical in industries such as Pharmaceuticals and Chemicals. The research offers insights into streamlining credit rating models while preserving industry-specific adjustments, which benefit investors, policymakers, and corporate decision makers.
Autores principais:Skaar, Helene Kverneland
Assunto:Credit ratings Scoring models Credit rating agencies Moody’s methodology Industry analysis Key drivers
Ano:2025
País:Portugal
Tipo de documento:dissertação de mestrado
Tipo de acesso:acesso embargado
Instituição associada:Universidade Nova de Lisboa
Idioma:inglês
Origem:Repositório Institucional da UNL
Descrição
Resumo:This thesis investigates the determinants of Moody’s credit ratings in seven industries, focusing on the role of firm size. Using factor analysis and regression modeling, the study identifies key financial factors that influence creditworthiness and explores the potential to simplify Moody’s credit rating methodology. The findings validate that firm size is a significant predictor, particularly in capital-intensive sectors such as Oil and Gas and Manufacturing, while qualitative factors remain critical in industries such as Pharmaceuticals and Chemicals. The research offers insights into streamlining credit rating models while preserving industry-specific adjustments, which benefit investors, policymakers, and corporate decision makers.