Understanding Credit Ratings and their Drivers: An Empirical Study of U.S.-based Corporations
This text sets out to examine what the general quantitative drivers of corporate credit ratings are. The result from an OLS regression identifies the following drivers: sales, the size of EBITDA in relation to debt, profitability, and interest coverage. When comparing the ratings from the agencies on a stand-alone basis, there are some differences. While interest coverage is a driving factor of S&
