Research On Our Country's KMV Model Of Listed Corporation Credit Rating Method

The sub-prime crisis has created a significantly negative impact on the world's financial industry, as well as the development of the global economy. Many experts of different countries have done a great deal of research and analysis on the formation of sub-prime crisis. As one of the causes, the international credit rating agencies have been criticized a lot. In fact, many countries have already started a survey on the credit rating agencies, which indicated that there are still many shortcomings and flaws in the process of the credit rating agencies conducting credit rating. What are mainly these shortcomings and flaws, and how to solve these problems to improve and develop the capabilities of rating agencies rating. It is also the focus of this article.Currently, China's credit rating industry is flourishing, but it is still the initial stage. In practice it is mainly government-oriented, and the proportion of market-orientation is low. There are many other issues on China's credit rating industry. In specific ratings,it is mainly quantitative analysis, and quantitative analysis is also emphasis on the index system, while model analysis is very little in use. There are still many disparities between our credit rating system and the developed foreign credit ratings system. It is particularly necessary to learn from the advanced developed countries about the credit rating industry development experience, so as to make China's credit rating industry to develop better and faster.The comparative analysis method is mainly used in this paper, which firstly gives a brief introduction on the current international and China's credit rating method. Taking into account the actual situation of credit rating industry in our country, the core of the paper is to analyze the inadequacies of China's current credit rating method,and especially put an emphasis to the current credit rating technology,shortcomings and flaws of the technology of credit ratings . In order to make the credit rating industry better serve our country economic development, the paper suggests development measures that should be taken to promote the credit rating industry. That is to develop model method on the base of factor method. Qualitative analysis and quantitative analysis should be integrated,also the connection among all the factors and the experience of the credit analyst should be taken into consideration on the whole.Finally,using the extensional KMV method, the article uses econometric and time series analysis method to conduct an empirical research on the credit status of China's listed companies,and perform the test correspondently,which testifies that the extensional KMV method is suitable to our country's listed companies'credit rating . On this basis,the paper suggests the development aim of our country's credit rating method, that is promote the orientation of quantitative analysis and model method.