The Financing Question Research Based On Enterprise Bond Credit Rating

Issuing corporate bond is a convenient financing channel in the capital markets,which is an important source for the company that obtains a long-term,stable funding. In 2009, in response to financial crisis, the local investment and financing platform and large state-owned enterprises had issued corporate bonds to raise funds. With the expansion of the issue of corporate bonds to raise funds,a necessary part of the issuing corporate bond called credit rating which affect the cost of bond issuance should arouse enough attention to business managers. Because the bond interest rate is related to the major cost of bond financing, and the interest rate is usually linked to the rating results given by rating agencies. In general, the bond credit ratings and the financing costs of issuing bonds is a negative correlation. so, the most important problem that manager should to be think is how to minimize the cost, to obtain the higher credit level to reduce the cost of corporate bond issues and improve financing efficiency.The paper is starting with the perspective of corporate bond credit rating and trying to find out the factors that affect the corporate bond credit rating, then, to help companies improve the bond levels and reduce financing costs. Thesis will follow the qualitative and quantitative analysis of the principle of combining, first, elaborate the corporate bond financing and the corporate bond credit rating related concept,theory and methods Systematically. second, through empirical research on the most corporate bonds issued from 2007 to 2009 in China, a total of 268 samples .The paper collects the non-financial indicators (state-owned share, issue size, bond maturity, security types, etc.) and financial indicators (total assets, debt ratio, cash ratio, EBITDA interest than, etc.) disclosed in the credit rating report and the recruit manual, uses correlation analysis to extract significant indicators which affect the levels of corporate bonds, and finds out that the credit ratings of the corporate bonds are related with issuance size, maturity, security types, macro variables, asset size, debt ratio, inventory turnover. Finally, based on these indicators which have significant impact on the credit rating,make rationalization proposals to increase the debt level and reduce the financing cost for the enterprise.