The Research Based On KMV Model On The Rick Of Municipal Bonds Credit

The law of the People’s Republic of China on the twelfth five-year plan for national economic and social development program, points out that in order to speed up the reform of the fiscal and taxation system, to establish and improve the local government debt management system, and explore establishing system of local governments to issue bonds; In addition, to actively yet prudently proceed with urbanization, we must deepen the reform of the urban construction investment and financing system and to bond issuance of municipal construction projects.With the development of urbanization, the national demand for public services is higher and higher, but the current public finance system in our country requires local governments to provide public services dominate. On the one hand, the local government finances, unable to cope with growing fiscal spending; On the other hand, the growing public service funding requirements needed by the local government funding, which can lead to contradiction is more and more prominent. As a result of the limitation of China’s "budget law" municipal bonds issued have not been able to, at the same time, the local government to ease the insufficient funds have set up local financing platform for financing, with the passage of time gradually built up a huge risk. Local government financing platform in the form of corporate bonds, bonds become off-balance sheet liabilities of local government, once the local government finances and allows the financing platform default, tension will cause serious losses on investors, brings a great threat to the country’s financial system security. Municipal bonds as countries such as Europe and the United States is one of the commonly used means of financing, its efficiency security was widely praised, also gradually cause the attention of relevant departments in our country and research.For our country to build the municipal bond market it is necessary to strengthen risk prevention awareness, strictly control the happening of the municipal bond credit risk. This article from the municipal bonds and relevant theories of municipal bond credit risk measurement, on the necessity of issuing municipal bond issuing credit risk measurement problem in the process of research, in hangzhou, for example to measure issuance, and puts forward Suggestions on the control of credit risk management. Expect the results to our country municipal bonds provide beneficial help to the issuer, and provide some reference value for investors.