The Research On The Quality Inspection Of Bond Rating Of Medium-sized And Small Enterprises

With the constant vigorous development of small and medium-sized enterprises(SMEs)in our country,a lot of financing is required,but SME bonds are limited in market for the information asymmetry between investors and creditors,which makes the SME bond issuance in the market more and more difficulty.Under that background,to improve SME credit rating quality and strengthen the quality inspection of of SME credit rating helps to improve the investment confidence of investors for the SME bonds,and is of great significance for our SMEs' bonds market.In this paper,the theory of credit rating and quality testing principle of small and medium sized enterprises is described in detail,and the credit quality of small and medium-sized enterprise bond is tested by empirical analysis.Our main work consists two parts.The first part is the quality inspection of SMEs' rating which is based on the financial status.We first apply factor analysis model to extract common factors from many collected financial indicators and then make ordered logit regression to analyze the happening probability of each credit rating.In addition,5 kinds of machine algorithms are added to make measurement subsidially.From the point of view of financial performances,the quality of credit rating agencies in China is fine,and different credit rating can reflect the financial situation of enterprises.In the process of classification using the machine algorithm,we find that the rating agencies put too much emphasis on the shortterm solvency of SMEs and the credit condition of the measurement is not comprehensive.At the end of this part,we have tested all used models and made a comparative analysis among them,finding that the prediction accuracy is 80%based on ordered logit regression model,decision tree and artificial neural network.The second part is the empirical analysis of the relationship between credit ratingand financial cost.With the consideration of the situation of the interaction between main rating,debt rating,the total amount of the issue and the coupon rate,a generalized linear model is introduced to examine the spread.The empirical result shows that the current SMEs' debt rating has a significant impact on their financial cost.But in the situation of interaction,the main rating has limited impact,and during the test,we need to consider the influence of issuance on spread.In all,the SMEs' credit rating in our country has good performance on the enterprise financial situation and the financing cost.But for the main rating,it still needs to be improved.That is due to the fact that SMEs' credit information disclosure is not complete,and the rating agencies should strengthen accuracy and stability in the main rating of enterprises.