Research On The Methods Of Credit Risk Rating And Empirical Examination

Along with the implementation of the Basel Accord and the reflection on the financial crisis bring about by sub-loan crisis of the United States, credit risk management has undoubtedly become the core issue of financial industry. China Insurance Regulatory Commission (CIRC) carried out "Insurance Institute Bond Investment Credit Rating Guide " in 2007 to ask all the insurance companies to set up internal credit rating system to rate all bonds that the company hold.Under this background, I took charge of the project of "Research on Bond Credit Risk Management and Empirical Examination" and successfully pass the examination of CIRC. This paper aims to set up an appropriate credit risk rating system under the real background of China with the method of analytic hierarchy process, internal credit rating and consistency check focusing on the establishment of credit risk rating index system and conducting the consistency check of the weight of index. In addition, through the empirical examination using the real data provided by Tian An Insurance Company, the research becomes more practical and meaningful. In future, I will insist on researching on credit risk rating to consummate my work.