| Since 2005, with the enrichment of bonds varieties in our country, the scale of the inter-bank bond market is expanding rapidly, so is the credit-rating industry. The level of credit rating has decisive influence on bond issuance and interest. The position of credit rating agencies (CRAs) becomes more and more important in bond market. However, most CRAs are paid by issuers, in which exist potential conflicts of interest, and may result in artificially inflated ratings. In August 2010, the China Credit Rating Co. (CCR) was founded, funded by National Association of Financial Market Institutional Investors (NAFMII). CCR is the first CRA that is paid by investors. Since then, CCR has carried out solicited or unsolicited ratings for hundreds of corporations. Comparing the rating result of CCR and other issuer-pay agencies, it is obvious that the former was lower, at least 1 or 2 levels, which means the existence of inflated ratings.In this background, the article selects the corporations that were rated by CCR and other issuer-pay agencies and use descriptive statistical analysis to find the differences of the rating results of the two different CRAs. Then, the article uses ordered logistic model to test the two rating models, in order to excavate the differences of key variables focused and the influence of each variable in these two models. In the meantime, the article uses the multiple-linear-regression model to further analyze the factors that may influence the level of differences.In addition, the article introduces the evolution of the foreign payment models, including improved models (such as Government as Hiring Agent model, Investor owned credit rating agencies, Platform pays model and Payment upon results model) and alternative models (such as Investor-pay model and Public Utility model). In the end, the article briefly analyzes the potential problems, such as "free rider" and conflicts of interests, of investor-pay model, and puts forward some suggestions. |
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