Research On The Influence Of Fiscal Subsidies To Credit Rating

As the main carrier of local government investment and financing,the control of debt of LGFVs and promotion of LGFVs transformation development,have become the key to control the recessive debt of local government and reduce the leverage of state-owned enterprises.This article takes the fifth national financial work conference as a quasi-natural experimental impact and selects the data of LGFVs from 2015 to 2019,Use the DID method to study the impact of conference impacts on the debt issuance credit spreads and credit rating,study whether there are still implicit guarantees in the debt issuance of LGFVs.Studies have found that that:the government implicit guarantee can significantly reduce the credit-spread of urban investment bonds.In low financial self-sufficiency areas,the local financial strength is generally tight,and the government’s support capacity is constrained.The credit spread of urban investment bonds in these areas is significantly higher than that of bonds in high financial self-sufficiency areas,it seems that the government implicit guarantee still exists.As one of the support methods of local governments,financial subsidies are a kind of explicit credit support.There are differences in the credit spreads and credit ratings of urban investment platforms.Financial subsidies can significantly reduce the credit spread of urban investment bonds,but have no impact on the main credit rating.