Research On Prevention And Control Of Debt Default Risk Of BT Group

Debt financing,as one of the main means of corporate financing in our country,is of great significance to corporate governance and directly affects corporate investment and financing decisions and business plans.With the continuous development of my country’s debt financing market,more and more companies have begun to operate with high leverage.However,under the influence of the country’s economic downturn and the country’s“deleveraging” and structural adjustment economic policies,the risk of corporate debt default is increasing.,Especially for private enterprises because of their weak ability to withstand risks,the situation of debt default is worrying.What are the factors that trigger the debt crisis of private enterprises,and how should private enterprises prevent and control the risk of debt default?This issue is worthy of attention and study.The environmental protection industry is a capital-intensive industry.During the "13th Five-Year Plan" period,it has entered a stage of rapid development.A large number of companies rely on borrowing for rapid expansion.After 2018,with changes in macroeconomic policies,many companies are facing a liquidity crisis and corporate debt defaults Risks continue to be high.This article uses BT Group as the case study object.First,it analyzes the current situation of BT Group’s debt and debt financing methods,sorts out BT Group’s debt defaults and the impact of debt defaults on BT Group,and then analyzes macroeconomic factors and environmental protection.Industry factors and internal factors of the group analyzed the causes of BT Group’s debt default risk.The formation of its debt default risk is mainly due to the following reasons: financial deleveraging and strong policy supervision,macroeconomic downturn,decline in the profitability of the environmental protection industry,and Under the background of facing financing difficulties,BT Group relied on the radical expansion of debt,which led to declining performance and worsening financial conditions.In addition to the accumulation of financing risks,the risk of debt default increased.In addition,BT Group’s non-financing cash flow continued to flow out and capital pressure was high.Exacerbated the risk of debt default.At the same time,this article estimates the risk of BT Group based on the Z-score model,and identifies the time point and risk trend of BT Group’s debt default risk.The results show that BT Group has already had a high debt default risk since2018,and The degree of risk continues to rise.Finally,this article proposes suggestions for BT Group to respond to and control debt default risks from the operational management level and financial management level.Through the case analysis of BT Group,it provides reference significance for private enterprises with the same high leverage in preventing and controlling debt default risks.