Building Enterprise Value-oriented Credit Rating Index System

In appearance, the market economy is characterized by a relationship of contract, but in essence it is a relationship of credit. In a market economy, keeping one credit and honoring the valid contracts represent a basic premise for a sound performance of an economic system. Oppositely it is not always the truth. Because of the inaccurate market expectation and the asymmetric information, this basic premise has been badly destroyed, which has disturbed the healthy movement of the social economy and the finance. As China's market-oriented economy is developing faster in the globalization trend of the world economy, the increasing financial and credit risks are calling for us to pay adequate attention to development of precautionary financial measures. Being an important means of comprehensive analysis and determination on the capability and reliability of honoring contracts by various economic entities, credit rating are acting as an indispensable role.In view that appraisal index is the specific of credit rating, the reasonability and usability of credit rating's results depends on whether the appraisal index is scientific or not. However, China has no perfect appraisal index system yet.This article is arranged as follows:Firstly, comparing the difference of rating methods between America and China, the article points out the problems in China's current rating system as well as analyses the usability of the system. Secondly, the article emphasizes the importance of corporate value followed by the analysis of the relevance between corporate value and credit rating system. Thirdly, the article puts forward a corporate-value-based credit rating system, which is characterized by two aspects: one is the expansion of the current rating system, the other is the improvement of the system, which is directed by the valuation methods. Finally, a case study is used to illustrate the feasibility of the question under discussion in the article.