Are Bankruptcy Prediction Models Effective for Predicting Ratings? An Empirical Investigation of Altman’s Model in Indian Corporate Sector
Gurmeet Singh,
Ravi Singla
Abstract:The alternative method for predicting credit ratings by employing bankruptcy prediction models is the main subject of the present article. Rating agencies utilize an extremely intricate rating methodology, which differs from agency to agency, and the ratings given by agencies are less reliable in anticipating short-term defaults and react slowly to credit events, as demonstrated by the failure of agencies during the crisis of 2008. Both credit rating assignment and bankruptcy prediction focused on the probabil… Show more
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