To read this content please select one of the options below:

An examination of rating agency explanations for credit rating changes in the hospital sector

Kreag Danvers (Department of Accounting, Wayne State University)

Journal of Public Budgeting, Accounting & Financial Management

ISSN: 1096-3367

Article publication date: 1 March 2003

52

Abstract

This study examines rating agency explanations that accompany changes in credit ratings for nonprofit hospitals. A national sample of Standard & Poor’s revision announcements is used to identify hospital characteristics that purportedly motivate credit rating changes. Significant differences in agency-cited performance dimensions, such as profitability, liquidity, service-mix, capital structure and market share, are observed across upward and downward revisions. The relative usefulness of these citations for explaining and classifying credit changes is also evaluated. The results suggest that agency explanations provide limited value relative to conventional, multivariate information sets.

Citation

Danvers, K. (2003), "An examination of rating agency explanations for credit rating changes in the hospital sector", Journal of Public Budgeting, Accounting & Financial Management, Vol. 15 No. 2, pp. 176-201. https://doi.org/10.1108/JPBAFM-15-02-2003-B002

Publisher

:

Emerald Publishing Limited

Copyright © 2003 by PrAcademics Press

Related articles