Study On The Model Of Credit Rating Of Small-medium Enterprises And Its Application

Credit rating is very important for the development of small-medium enterprises (SMEs). A suit of technique and method of credit rating of SMEs which is scientific,integrated can make the credit banks and rating institutions judge the credit levels of SMEs accurately, then provide the important reference for the credit support which bank offer to enterprises. However, there is a lack of a suit of technique and method of credit rating which is compatible with native SMEs in China. It restricts the development of Chinese SMEs seriously. Therefore, it is a problem which need resolve urgently to establish a suit of evaluation index systems and models that is integrated,scientific and compatible with Chinese SMEs. Compared with large enterprises, SMEs have their own characteristics, so we should establish the credit evaluation index system and model of SMEs based on existing evaluation index systems and models and the characteristics of SMEs.This paper starts with the theory of SMEs and credit rating. Then according to the characteristics of our country's SMEs and the principles of establishing the evaluation index system, and based on existing evaluation index systems both in our country and in other countries, the paper establishes a suit of evaluation index system which is able to reflect the SMEs'credit roundly and factually from six aspects, i.e. market appraising,basic makings of enterprise,financial appraising,innovation appraising,risk appraising and former credit. Afterwards, through analyzing and choosing existing techniques and methods of credit rating, the paper uses the method of analytic hierarchy process (AHP) combined with fuzzy comprehensive evaluation to establish the credit rating model of our country's SMEs according to the each technique and method's applicability and feasibility to the credit rating of our country's SMEs. Firstly, the paper calculates the weight of each index in the index system using AHP. Secondly, based on the correlative theory of fuzzy mathematics, the author gains the credit level of evaluated-enterprise using the subjection degree analysis and algorithm of fuzzy matrix. After establishing the credit rating model of SMEs, in order to explain the use of this model and verify the applicability and validity of this model, the author chooses an appropriate enterprise and evaluates its credit level using this model. The final result accords with the evaluating results which are gained by other institutions or departments using different methods of credit rating. This proves that the credit evaluation index system and model which are established in this paper have the validity and feasibility, and are able to reflect the evaluated-enterprise's credit roundly and factually.