SPDB Heavy Industry Enterprise Credit Rank Evaluation System Research

Credit rating is the primary and the most fundamental part in credit granting business. The important role of credit rating is to control the credit risk on the front line. However, with the highly speed of modern science's development, SPDB's credit rating system has been gradually out of date since it went into effect seventeen years ago. Part of the technological indices in the old credit rating system is lagging the time, which means the results conducted by the old system biased. It is risky to use such system to rating companies, thus, the old system has to be updated.The thesis is composed by four main chapters. Chapter I introduces the research background. ChapterⅡfocus on the present situation of the SPDB's heavy industry company's credit rating system. explains and analyzes the indices. Chapter III initiates the suggestions of the new credit rating system, focus on how to choose the indices and rectify the ratios. Chapter IV is case study, the author randomly choose a public company as the sample. The new credit rating system and the old one are tested by the sample company's financial data, the results generated by the two systems compared. The case study shows the new rating system is more effective than the old one.The research emphasis of the thesis is how to choose the indices and rectify the ratios of the new credit rating system. The author chooses the new indices to replace those out-of-date ones. The new system can better reflect the company's operational results, a better judging for the users, a better decision making support for banks.The innovations of the thesis are as follows:first, the new credit rating system point out the importance of the cash flow indices, which is in term with the Basel Accord. Second, the new system is on the basis of the old one without changing the core structure of the old one. For those who use the new system, it is easily to master. Third, the new system set up the criterion of how to choose indices, which guarantees the objectivity of the rating results. Last, the research takes the company's development and changes into consideration by utilizing the dynamic and static research tools.