Research Of Credit Rating Of Fertilizer Business Based On Analytic Hierarchy Process

Increasingly valued by society to prevent credit risks, credit rating has become an important technical means for the investment field to improve credit risk management capabilities. In order to improve the accuracy credit rating should be combined with the operating characteristics of the industry and should not be stereotyped.That means rating of the different industries should base on different indicators standard.The author raised the credit rating index system suitable for China’s chemical fertilizer industries and enterprises based on the analysis of credit concept, China’s fertilizer industry features and the credit rating index.Then the author empowered to evaluation index system by the Analytic Hierarchy Process to get the credit rating model. Through the validation of bond issuancers in the bond market the paper proved that this model has some applicability.On the basis of previous studies,the paper tried a number of innovative research, such as (1) in the past, commercial banks" or rating agencies" credit risk assessment has largely ignored the industry risk factors and the only risk measure is the enterprises themselves.what’s more,it’s limited for the specific industry research. By analyzing the characteristics of the fertilizer industry the paper summarized industry elements to the credit rating indicators, so this is the innovation in the research point of the credit rating.(2) In the past most of the empirical study of credit rating took listed companies as a principal and ST companies were looked as a breach of contract sample, this paper uses corporates who issue bond in the bond market as the principal results of the empirical analysis.