Research On Credit Risk Of Environmental Protection Enterprises

In recent years,China has focused on improving the quality of economic development and the well-being of residents.The environmental protection industry has become one of the industries that the State encourages and supports and tends to adopt positive policies.Environmental protection industry has the characteristics of large capital investment,long project cycle and poor cash-generating ability.As the Chinese economy development enters the "new normal" stage,credit default incidents occur frequently in bond market,including a certain number of environmental protection enterprises.Previous study has not established a credit risk assessment method for environmental protection industry.The research on credit risk of environmental protection industry can not only help investors avoid risks,but also help relevant enterprises to evaluate operational risks,optimize business management,formulate correct strategies,and ensure the safe and stable development of Chinese environmental protection industry.Based on the research on credit risk of environmental protection enterprises in China,this paper takes the Shenwu Environmental Technology CO.,LTD as the starting point and restores its risk accumulation process,thus figuring out the reasons for credit risk of environmental protection enterprises and the ways to prevent and resolve credit risks.Firstly,the credit risk theory system is reviewed.The credit risk evaluation model is compared.The Z-score model is modified according to the criteria of accuracy,intuition and suitability.The KMV model is used as the verification to describe the credit risk accumulation process of environmental protection enterprises.This paper sorts out the characteristics and development process of China's environmental protection industry,analyzes the financial characteristics and risk types of China's environmental protection industry through PEST model,and based on this,selects 26 financial indicators of 20 environmentally-listed companies to protect the Z-score model.Enterprise adaptation fixes.In the case study section,Firstly,this paper introduces the beginning and end of the Shenwu Environmental Protection Company's default event,and then uses the revised Z-score model to describe the accumulation process of Shenwu Environmental Protection Company's credit default risk,and determine that the Z-score fluctuates sharply in 2016 and 2017.The main analysis node.Subsequently,the company's external environment and the company's strategic changes,business model transformation and related financial indicators were analyzed.The results show that Shenwu environmental protection depends on external financing too much,financial risk awareness,and "innovative industrial PPP business model" is too large.And the tightening of the macro bond market and the capital market at the same time is the cause of the breach of the environmental protection credit of Shenwu Environmental Technology CO.,LTD.Based on the overall analysis,this paper believes that environmental protection enterprises need to pay attention to debt default in today's macro and micro environment.The analysis framework established in this paper can be applied to the credit risk analysis of environmental protection enterprises in China.The article puts forward suggestions from three aspects: it is recommended that environmental protection industry managers reasonably select financing methods and business models;appeal to creditors to diversify investment risks and reduce default losses;it is recommended that the supervisory layer strengthen the top-level design of the system.The three parties work together to promote the stable and healthy development of China's environmental protection enterprises.