Financial distress is a condition in which a company cannot create sufficient income, thus making it unable to meet its financial obligations. Ignoring signs of financial distress can be detrimental for the companies, and it may even cause bankruptcy. The financial distress is about financial health of a company and credit rating is a good early warning indicator of financial health.
This paper attempts to investigate the financial health of health sector in Turkey for the period from 2000 to 2020. In order to evaluate financial health of the health sector in Turkey, we use Central Bank of Republic of Turkey’s Company Accounts and calculate credit ratings via Altman Z- Score Methodology. The basic conclusion of the paper is that although the credit rating is not sufficient for investors, there are some improvements in the rating grades.