This paper uses collected sample data from 96 cities across 33 states in the U.S. to examine statistical relationships and predictions between business tax rates, city financial statement line item ratios, and bond ratings. It finds a model that predicts city bond ratings based on selected tax rates and financial ratios. This paper then tests the model on California cities and finds that it can accurately predict many California city bond ratings.
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This paper uses collected sample data from 96 cities across 33 states in the U.S. to examine statistical relationships and predictions between business tax rates, city financial statement line item ratios, and bond ratings. It finds a model that predicts city bond ratings based on selected tax rates and financial ratios. This paper then tests the model on California cities and finds that it can accurately predict many California city bond ratings.