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A proposed quantitative credit-rating methodology for South African provincial departments

South African journal of economic and management sciences, 2016-01, Vol.19 (2), p.192-214 [Peer Reviewed Journal]

Copyright University of Pretoria, Faculty of Economic & Management Sciences 2016 ;ISSN: 1015-8812 ;EISSN: 2222-3436 ;DOI: 10.4102/sajems.v19i2.1260

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  • Title:
    A proposed quantitative credit-rating methodology for South African provincial departments
  • Author: Fourie, Erika ; Verster, Tanja ; Van Vuuren, Gary Wayne
  • Subjects: Annual reports ; Credit ratings ; Developing countries ; Economic conditions ; GDP ; Gross Domestic Product ; Infrastructure ; Interest rates ; LDCs ; Rating services ; Studies
  • Is Part Of: South African journal of economic and management sciences, 2016-01, Vol.19 (2), p.192-214
  • Description: The development of subnational credit-rating methodologies affords benefits for subnationals, the sovereign and its citizens. Trusted credit ratings facilitate access to financial markets and above-average ratings allow for the negotiation of better collateral and guarantee agreements, as well as for funding of, for example, infrastructure projects at superior (lower) interest rates. This paper develops the quantitative section of a credit-rating methodology for South African subnationals. The unique characteristics of South African data, their assembly, and the selection of dependent and independent variables for the linear-regression model chosen, are discussed. The methodology is then applied to the provincial Department of Health using linear regression modelling.
  • Publisher: Pretoria: AOSIS
  • Language: English;Afrikaans
  • Identifier: ISSN: 1015-8812
    EISSN: 2222-3436
    DOI: 10.4102/sajems.v19i2.1260
  • Source: ROAD: Directory of Open Access Scholarly Resources
    ProQuest Central
    DOAJ Directory of Open Access Journals

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