Risk Analysis And Credit Rating Of The Local Government Financial Platforms

Be infected by international financial crisis in 2008, our government implied proactive fiscal policy and appropriately loose monetary policy, and initiated a series of investment plan to improve the development of economy. Financial banks expand the scope of loan so local government investment platform got a unprecedented opportunity. By investment platform, local government solved the shortage of financial income and construction fund and promoted construction of infrastructure and the course of China’s urbanization. But at the same time, the underlying risk of the local government financial platform began to emerge. According to the investigation by the People’s Bank of China of credit situation for all local government financial platforms, until the end of 2010 there are about 10 thousand financial platforms and the number has increased more than 25% than the end of 2008. The scale of the local government financial platform has expanded so rapidly that the risks also have increased much and have caused serious concern to government, banks and the masses.This paper analyses the research background and present research station at home and abroad and elaborates the meaning, classification, model at home and abroad, development process and risks of credit in order to lay a good foundation for the rear research.Then this paper introduces in detail fuzzy comprehensive evaluation and builds index system and method of credit rating to the local government financial platforms to assess their credit. This paper takes the case of Zhong Tian City Investment Group in Gui Zhou Province to simulate and proves feasibility of the fuzzy comprehensive evaluation. At last this paper puts forwards systematic methods about the risks from three aspects which are local government, financial platform and financial bank.