The Research On Operating Obstacles And Regulating Development Of External Credit Ratings

The development of commodity economy has further highlighted the credit’simportment position in the economy,and the credit has become one of the pillar of theeconomy market. The missing of credit will affect the stability of financial marketsand a range of financial instruments, even make the financial markets stagnation.Non-standard credit market can also cause a range of conditions, thus, regulate creditbehavior is an important basis for national economic development. Currently, thecredit rating mainly by the credit rating agencies. In our country,ratings on financialmarkets rely mainly on commercial bank internal rating system, the time of theexternal rating agencies’ development is short, rating experience and rating systemmainly imitate foreign rating models, this reducing the persuasiveness and credibilityof external credit rating. Therefore, further investigate on operating obstacles andregulating development of external credit ratings has important practical significance.This paper, based on the theory of credit rating,takes XX rating company forexample, on the basis of full investigation of this company’s rating processes andcustomer, expounds its operation situation and rating system, analyzes the barriers andreasons that exist in its operation. On the basis of learning from foreign advancedexperience of external rating,we put forward some suggestions on the development ofChina’s external rating.The main conclusions are:First, China’s credit rating companies have begun to take shape, but the qualityof managers is not yet meet the requirements of the industry’s development, mostlyrelying on rating analysts’ subjective judgments,it is weak to use rating system andanalytical techniques scientifically, thus affecting the rating results objectivity andaccuracy;Second, through the analysis,we clarify the causes that the credit ratingcompanies run barriers: lacking of coordinate and support among subjects with external ratings, lacking of legal qualifications to support rating agencies operate, thePeople’s Bank of china grassroots’ ratings dominant functions missing, rating criteriaand indicator system is not standardized;Third, by learning from the advanced experience of foreign external ratingagencies, make some suggestions on the development of external credit ratings:Strengthen exchanges and cooperation in the industry, to strengthen regulation of thecredit rating market, to set up a faithless punishment mechanism through bank creditconstraints, give full play to the functions of grassroots People’s Bank of China, toscientifically build rating criteria and index system, strengthen social promotion force.