World Bank Group2016-02-252016-02-252015-11https://hdl.handle.net/10986/23754The Kenya water supply and sanitation (WSS) sector has been on a long path of facilitating commercial lending to Water Service Providers (WSPs). A key component of this effort is the evolution of rating the credit risk of WSPs for local lenders. However, the trade-off in credit rating WSPs is to provide the best credit analysis to help lenders assess the creditworthiness of WSPs, yet have a system that is simple and affordable enough to replicate on an annual basis. To solve this trade-off, the Water Services Regulatory Board (WASREB) and the Water and Sanitation Program of the World Bank have created a Creditworthiness Index for the WSPs in Kenya. In lieu of performing a full shadow rating analysis, which is much more thorough yet also more time-consuming and costly, the Creditworthiness Index provides a simplified snapshot of the financial and operational performance of WSPs.en-USCC BY 3.0 IGOTARIFFSSOVEREIGN BENCHMARKDEFICITCAPITAL MARKETSREGULATORY FRAMEWORKBORROWERCORPORATE DEFAULTINTEREST RATE SPREADDEFAULTSFINANCIAL MANAGEMENTINFORMATION SYSTEMDEBTORSINTERESTDOMESTIC CREDIT RATINGINTEREST RATEOPTIONLIQUIDITYDOMESTIC MARKETDEBTORREPAYMENTSINFRASTRUCTURE DEVELOPMENTTOTAL DEBTREVENUESFINANCIAL STATEMENTSDEFAULT RISKLOANCREDITWORTHINESSBORROWERSTAXINCOME TAXINCOME STREAMSGOVERNMENT SUPPORTINFLATIONINTERNATIONAL BANKPENSIONCASH FLOWSINSTRUMENTSLENDERDEBT PAYMENTEMERGING MARKET ECONOMIESENABLING ENVIRONMENTBUDGETHUMAN RESOURCECREDIT RATINGSCURRENCYINTEREST EXPENSESECURITIES MARKETDEBTSFINANCESLENDING DECISIONSCASH RESERVESEMERGING MARKETFINANCIAL INSTITUTIONSMARKETSDEBTLONG TERM DEBTRETURNLENDERSACCOUNTS RECEIVABLELOANSRESERVESNATIONAL TREASURYDEBT SERVICECAPITAL INVESTMENTSDUE DILIGENCECREDIT RATING COMPANYLEGAL FRAMEWORKFINANCEMARKET ECONOMIESPROFIT MARGINEXPENDITURETRANSACTIONSEQUITYLOAN REPAYMENTINVESTORSSOVEREIGN RATINGSDEBT PAYMENTSGOODGOVERNMENT BUDGETCOMMERCIAL CREDITGOVERNANCE ISSUESCREDIT ASSESSMENTTURNOVERLIQUIDITY RATIOSFUTUREDEFAULT RATESCORPORATE BORROWERSBUDGETSREPAYMENTFINANCIAL PERFORMANCEAMORTIZATIONISSUANCELEGAL OWNERSHIPCASH MANAGEMENTBALANCE SHEETMARKETDEFAULTLOCAL CURRENCYCREDIT RATINGPRINCIPAL REPAYMENTSRISK OF DEFAULTMUNICIPAL FINANCESECURITIESTREASURYSOLVENCYCREDIT RISKINFRASTRUCTURE INVESTMENTSGOVERNMENT POLICIESINTERESTSCREDIT RATING AGENCYINVESTORSECURITYDEBT INSTRUMENTSINVESTMENTDOMESTIC CREDITCOMMERCIAL BANKSHUMAN RESOURCESPOVERTYCREDIT QUALITYFINANCIAL INFORMATIONTARIFFDEFAULT RATEDEBT SERVICE PAYMENTSREVENUEMARKET SPECIALISTPROFITINVESTMENTSLENDINGDEBT INSTRUMENTTRUST FUNDLIQUIDITY RATIOMARKET FINANCEINSTRUMENTCREDIT STRENGTHPUBLIC SPENDINGLOCAL LENDERSLIABILITIESDEBT SERVICE PAYMENTGUARANTEEDEVELOPMENT BANKCASH FLOWINVESTINGReportWorld Bank10.1596/23754