Edward I. Altman, professor at the Stern School of Business at New York University and the architect of the Altman Z-Score, recently stated the probability of default (PD) for some of the European countries over the next five years based on his Z-metrics (the third generation of Altman’s Z-score model),
Read the full article here including PDs for companies in various European countries.
“Over the next five years the PD for Spain and Italy is over 25%, and for Portugal it’s 40%. In addition the Z-metrics model shows a sharp upturn in risk for France recently, with its PD climbing towards 12%. It is clear that all these European countries haven’t cured their fundamentals and growth is a very distant prospect, especially given the strong euro and lack of needed labor reforms. If you want a short, short France,”
Read the full article here including PDs for companies in various European countries.
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