Credit Rating Of China Local Government

Government credit plays important part in the modern society, the government credit is the exemplary credit in the personal credit, enterprise credit and society credit. And also government credit has demonstration effect for other credit. Shaping good government credit is benefit to construct a social credit system and create a credit environment for the economic development.With the further development of market economy, our local governments continue to expand administrative areas, the relationship between the governments and the citizens is becoming more and more complex, with transformation process in the economic system, there will be inevitable conflict between the new and old system, and also credit problems growing. While at the same time administrative reform can’t keep up with the economy development, so local government credit coms down, the government credit is facing severe test. In order to cope with the financial crisis of2008, from the beginning of2009, the central treasury issue local government bonds, by the end of2012, the Treasury issuing government bonds of800billion yuan amont, the proactive fiscal policy kept China’s economy growth. But also we know that, local government bonds can’t meet the financing needs of local government, local government financing platform made the local government debt increases, the government credit is also affected by the platform. At present, due to the multiple obstacles, China has no local government credit rating agencies to do the work, of our country individual credit rating agencies rating, one or two agencies construct the new standard model evaluation of local government credit rating, but most of the research only stay in the theory stage, and no opportunities to practice. Under the background of local government lack of social credibility in our country, so in this paper I choose research credit rating of local government, it definitely has important theoretical significance and practical value.According to the local economic and social functions, this paper defined the scope of local government credit rating, then according to the relevant theories, building credit evaluation of three level indexes, so as to form a complete evaluation index system, on this basis. Give each index assignment figure using the actual the data and the corresponding evaluation method to form comprehensive evaluation, and then combined with the extended KMV model to establish a comprehensive evaluation model. Finally,I use the31provinces of our country as the research sample, making actual credit rating for31provincial level government’s credit status. According to rating results, propose suggestions from three aspects to raise the credit of local government.