Leasing's impact on firm credit ratings

By applying two of the most accurate credit rating models, Altman’s Z score and Emery and Cogger’s Lambda, I have been able to set up a framework for comparing small Portuguese companies with larger FTSE corporations. These two credit rating models have been used in this paper as proxies for a firms stability and overall success. In addition to calculating individual firm credit ratings, I have also obtained cross sectional data on firm leasing intensities which I have used as the independent variables in a number of regression analyses. By regressing the credit rating outputs on the cross sectional leasing data, I have been able to establish whether leasing bears any impact on a firms credit rating