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Prof. Edward Altman on rising corporate debt and his recent Z-score forecasts

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Excerpt from The Wall Street Journal -- "'Many companies are repeating some of the mistakes of the past,' by taking on too much debt, said Edward Altman, a New York University business school professor and the creator of a well-known tool for measuring corporate health, called the Z-score. Mr. Altman said his latest forecast, which measures the probability of corporate defaults, showed overall corporate health was 'no better than it was in 2007 and by some measures worse.' The median scores, which measure corporate financial health by analyzing a combination of liquidity, earnings, solvency and stock market valuations, were 4% lower for companies rated 'junk' in 2012 than in 2007."

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