Research On The Quality Of China’s Bond Credit Rating

In the past 40 years,China’s bond market develop rapidly from scratch,with its scale reaching 43.73 trillion yuan at the end of 2016,becoming the world’s third-largest bond market.Along with the growing bond market,credit ratings are increasingly important.Due to information asymmetry between investment and financing,the two sides will refer to the result of credit rating for financing and investment behavior to make decisions,so the quality of credit rating testing is especially important.In theory,the credit rating agency shall be used as an independent third party,with its professional ability for financing enterprises and the issuance of bonds by the continuous credit risk evaluation,credit rating report,reduce the information asymmetry between investment and financing.However,due to the development history of our country’s credit rating industry is shorter,the credit rating quality inspection system is not perfect,credit rating agencies rating methods between each are not identical,leading to the consistency and validity of the results of the lower credit ratings.Therefore,how to the credit quality of credit rating agencies,reasonable and accurate inspection to promote the healthy development of credit rating industry,improve the credit rating of credibility analysis and research has become a pressing issue.This paper combed the credit rating the quality inspection of the theory and literature at home and abroad,based on the analysis of credit rating based on the theory of consistency and effectiveness,combined with the data of China’s bond market,based on the type of bond debt spreads and the credit rating agency,by ordered probit model,by using the method of empirical analysis on the quality of our country’s credit rating from the following two aspects:the inspection a,by investigating the influencing factors of rating inspection rating information whether to reflect the operating risk and financial risk in the comprehensive evaluation,the credit rating is revealed against the risk of default;To examine the consistency and validity of ratings information of different types of credit rating agencies and compare them with foreign bond rating data.Empirical analysis mainly gets the following results:(1)bond rating was associated with a significant bond spreads of national debt in our country,then explain China’s bond rating has a role in revealing the risk of default;(2)the different credit ratings agencies in our country’s bond rating is given,the poor consistency of credit rating agencies and international partners rating standard is more rigorous,they rated bonds have lower yields;(3)our country’s credit rating agency standard compared with international credit rating agencies are very rough and broad,will obviously have different level of default risk bonds into the same rating,which makes the effectiveness of China’s bond rating.Finally,the paper through the analysis of the empirical study reflects the problems existing in the development of our country’s credit rating industry,gives the policy Suggestions to promote the development of credit rating industry norms,and the credit rating industry outlook,in order to give full play to the role of the credit rating to reveal the credit risk,reduce the role of information asymmetry,promoting the robust development of China’s bond market.