Risk Assessment Of ABS In PPP Projects

At the end of 2016,China began to formulate relevant policies on ABS in PPP projects.At the beginning of 2017,the first batch of PPP asset securitization projects in China was launched,which has since established the bridge between capital market and PPP projects.The securitization of PPP project assets is accompanied by various risk issues such as long project cycle,numerous transaction subjects,and complicated transaction structure.At present,the research on asset securitization of PPP project is mostly at the level of model analysis and case introduction,lacking the analysis and quantification of project risk.In order to ensure the smooth development of the project,the research on its risk is helpful to provide some reference for the actual operation of the project.This article is mainly based on the comprehensive fuzzy evaluation method,selecting indicators and building a second-level risk evaluation index system of Jinglan Muhe PPP-ABS,determining the index levels and corresponding weights at all levels,and finally scoring the risk level of Jinglan Muhe PPP-ABS.This article explains and analyzes the results to systematically measure the risk level of Jinglan Muhe PPP-ABS.Through research,it is concluded that in the Jinlan Muhe PPP-ABS,the risk factor that has the greatest impact on it is the underlying asset risk,which is mainly derived from the underlying asset cash flow-related risks;the second is the asset-backed securities risk,which mainly has ratings Downrage risk.In this case,due to various ways of increasing credit,the parent company’s operating conditions,policy support and local government financial income,the comprehensive assessment of the risk level is medium level.Studying this case has reference value for other PPP project to reduce the risk level.It is helpful to prevent these two types of risks when conducting PPP asset securitization business,such as targeted improvement of the legal and regulatory system environment,improvement of the secondary market trading system,promotion of public offering related channels and introduction of medium and long-term investors.