A proposed quantitative credit-rating methodology for South African provincial departments
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 fo...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
AOSIS
2016-05-01
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| Series: | South African Journal of Economic and Management Sciences |
| Online Access: | https://sajems.org/index.php/sajems/article/view/1260 |
| _version_ | 1819124249336479744 |
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| author | Erika Fourie Tanja Verster Gary Wayne van Vuuren |
| author_facet | Erika Fourie Tanja Verster Gary Wayne van Vuuren |
| author_sort | Erika Fourie |
| collection | DOAJ |
| 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. |
| first_indexed | 2024-12-22T07:21:14Z |
| format | Article |
| id | doaj.art-4c17000111d8483d9de3b1c8bb599418 |
| institution | Directory Open Access Journal |
| issn | 1015-8812 2222-3436 |
| language | English |
| last_indexed | 2024-12-22T07:21:14Z |
| publishDate | 2016-05-01 |
| publisher | AOSIS |
| record_format | Article |
| series | South African Journal of Economic and Management Sciences |
| spelling | doaj.art-4c17000111d8483d9de3b1c8bb5994182022-12-21T18:34:15ZengAOSISSouth African Journal of Economic and Management Sciences1015-88122222-34362016-05-0119219221410.4102/sajems.v19i2.1260506A proposed quantitative credit-rating methodology for South African provincial departmentsErika Fourie0Tanja Verster1Gary Wayne van VuurenNorth West University, Centre for Business Mathematics and InformaticsNorth West University, Centre for Business Mathematics and InformaticsThe 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.https://sajems.org/index.php/sajems/article/view/1260 |
| spellingShingle | Erika Fourie Tanja Verster Gary Wayne van Vuuren A proposed quantitative credit-rating methodology for South African provincial departments South African Journal of Economic and Management Sciences |
| title | A proposed quantitative credit-rating methodology for South African provincial departments |
| title_full | A proposed quantitative credit-rating methodology for South African provincial departments |
| title_fullStr | A proposed quantitative credit-rating methodology for South African provincial departments |
| title_full_unstemmed | A proposed quantitative credit-rating methodology for South African provincial departments |
| title_short | A proposed quantitative credit-rating methodology for South African provincial departments |
| title_sort | proposed quantitative credit rating methodology for south african provincial departments |
| url | https://sajems.org/index.php/sajems/article/view/1260 |
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