Credit Analysis On CHAORISOLAR Co., LTD

"Zero default" phenomenon in domestic bond market leads to that investors in the bond market hold awareness of credit risk is very low. Many investors invest in corporate bonds as Treasury bonds and financial bonds, which are basically safe, holding the view of taking back the principal and interest when at bond maturity date. But, in fact, is in direct proportion to the benefits and risks. With expansion of credit bonds issuance, the issuer’s credit rating going down, it is possible that event of default on corporate bond will happen in the future. Due to the zero default market, few investors have focused on the company’s credit risk.A sharp deterioration in photovoltaic industry, as a member of photovoltaic industry, CHAORISOLAR is not immune. The bond (112061) issued by CHAORISOLAR in2012exist great risk of default, though the first payment of interest on March7,2013progressed on schedule. However, its failure of nationalization cast a cloud over its future. When the time of issuance of112061, credit rating of corporate itself and bond are both AA, but only a few months later, news broke that its fund chain broke. If it defaults, it will be China’s first default of credit bond, and be an important significance.In this paper, taking CHAORISOLAR as a case, by mining advance information by mining, I try to find some reasons that can lead to the cause of losses. These reasons maybe provide some reference to bond investors for later. I research credit risk mainly by two levels-company and industry, and list important financial information which we should pay attention and risk warning events.