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AWWA ACE94003
- Financial Distress Assessment Models for Small Water Utilities
- Conference Proceeding by American Water Works Association, 01/01/1994
- Publisher: AWWA
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This paper reviews the bankruptcy and failure prediction models that have appeared in the finance literature and develops a distress classification model for water utilities. The methodology can be used as an early warning system to identify potentially bankrupt or financially distressed water utilities, as a screening device applied to systems seeking certification, and as a viability test for evaluating prospective structural changes among existing systems. All of these outcomes singly or together should help reduce the future impact of distressed water utilities.