Study On Credit Rating Of Asset Securitization

Asset securitization,which is the underlying asset,that lack of liquidity but it will create stable cash flow, and the risks and benefits of "true sale" transferred to a special purpose vehicle (special Purpose Vehicle SPV), and then the structure homologous recombination into sales and circulation of securities in the financial markets. The asset securitization developed slowly in China, in2007, with the outbreak of the U.S. subprime mortgage crisis triggered by the global financial crisis, the culprit is the secondary real estate mortgage loan asset-backed securities issued by the U.S.(such as CDS, CDO, etc.), issued by the U.S. subprime loan derivatives with three international rating agencies rating, and the most of the products are in a higher level, but as the crisis continues to spread, asset securitization and credit rating institutions have received the universal condemnation of the international public opinion, the rating agencies received objectivity and fairness in the rating of securitized products which is widely questioned. Asset securitization credit rating is an important step of the asset-backed securities issued by credit rating, and reveal the investment risk to investors, and thus serve to reduce the financing costs of the issuer and investors because asymmetric information generated information gathering costs and investment risk, asset securitization business will carry out a profound impact.This paper is base on the in-depth study of the relevant literature and theory of asset securitization and credit rating, establish the theory of asset securitization suitable for credit rating method, and finally put the case of the proposed asset securitization credit rating method into practice. The theory of practical application, including the use of Monte Carlo simulation and stress testing analysis methods, to conduct a comprehensive study of the theory and practice of the credit rating of asset securitization in China. This paper, which asset-backed securities credit rating method theory is a comprehensive reference with reference to well-known international rating agencies, asset securitization rating technology, taking into account of the characteristics of China’s economic and capital market, in order to examine the asset-backed securities on time and in full to repay principal and interest, which include four aspects of asset securitization transactions analysis: the analysis of the underlying asset pool, the structure of the transaction, the analysis of the parties involved as well as legal analysis. The case analysis results show that there is no uniqueness of the final hierarchical level of the credit rating of asset securitization in China.