Research On Credit Rating Model Of Property Developers In Construction Bank A Branch

Construction Bank A branch plays an important role in real estate industry inHeilongjiang Province. Real estate is a capital-intensive industry and most of thedevelopers rely on the bank loans. Compared with other three stated-owned banks,Construction Bank A provides the largest amount in Heilongjiang Province.Considering the unbalance of property market, the lack of public property marketinformation, and the limited size of property developers, it is essential to study thecredit rating model for property developers in Construction Bank.This paper first introduces the source and measure method of this property creditrisks. Moreover, this paper concludes the property developer’s credit in ConstructionBank A Branch, such as the credit rating model and indicator system. It alsocomments on the disadvantage of the credit rating model for property developers frombusiness and financial risk perspectives. In addition, this paper provides the designprinciple for credit rating model. Based on these principles, this paper establishes thebusiness and financial indicator system. In financial indicator system, after selectingfinancial indicators, this paper evaluates the financial risk through Logistic regression.In business indicator system, this paper adds government polity and developercertificate indicator, and specifies property market factors. The scores of indicatorsare calculated based on the rating guideline.Finally, this paper tests the credit rating model through one property loan case.Based on the client information, this paper evaluates its financial and business risk.We conclude that the probability of default of this property developer is quite low.