Corporate Bonds Credit Rating Based On Factor Analysis And Cluster Analysis Of Financial Indicators System Is Constructed

Chinese bond market plays an extremely important part in the capital market, but up to now it has not shown all its affect and bond financing only contains a very small part of corporate financing, so the development of corporate bond market in Chinese capital market is one of our important work to development Chinese capital market and the development of corporate bond credit rating system will be the most important one.The investment of the corporate credit rating system has been made about a hundred years, but in China the credit rating is just a new industry (In 1987, China issued the first corporate bonds), whether in theorists or the bond rating services, corporate bond credit rating is still at the beginning, how to build a more reasonable bond credit ratings system is particularly important and urgent. Although in recent years, we have done so many works on bond rating system, such as some domestic bond rating agencies cooperated with the international bond credit rating agencies to learn and develop their own credit rating methods, but since we have so many bond rating agencies, we have so many methods. Theorists have also done a lot of jobs, but compared to the developed countries, we have been lagged so far away. Therefore, our bond credit rating will still be a hard and important work for us.In the consideration of the importance of bond credit rating and the special phase which China's bond credit rating is in, this paper does research on the index system which is the key part of the bond credit rating. At the beginning, this paper compares and concludes the research results of some important rating agencies from home and abroad and their rating method and rating system.(The international agencies include Moody, Standard & Poors, Fitch, domestic agencies include China Lianhe Credit Rating, China Cheng Xin International Credit Rating and Dagong Global Credit Rating). According to the analysis, China's bond credit rating still has huge development space. The principle and content of cluster analysis and factor analysis which are the main research methods are introduced. Then some indexes are screened from the standard financial statements introduced on the basis of the viewpoints from theory system. After that, this paper begins its empirical analysis. The correlation analysis is done first to the preliminary indexes selected with China's bond data in 2008 and 2009. Then the factor analysis is done to find the six new factors which contain more original target information and the relation between the new factors and the original indexes is showed by the formula. With the analysis above, the final index system and the total score of each sample are formed on the basis of six new factors. With the data from the new factors, the cluster analysis is done again to classify the samples in this paper and compare the results with the practical rating from the rating agencies to check the index system's practicality. The research in this paper is aimed to supplement the bond credit rating theory and method in China, provide suggestions for the development of China's bond credit rating industry and make contributions to the perfection of the bond credit rating system.