Empirical Research On Credit Rating Of Estate Company In China

In 2014, as economic globalization further quickens, China’s opening to outside world is deepening. After subprime crisis, the credit business has brought great challenges to domestic and international banks. As this problem exposed, it provides a good opportunity for the development of credit rating industry. By the end of 2014, domestic debt rating and credit rating have changed up to 336 times. The proportion of the increase is 81.55% and the others is 18.45%. Compared with European and American countries, these proportions are serious imbalances. This problem highlights many problems in the domestic credit rating industry, such as technological laggard and the imperfect system.As an important customer of bank credit, the credit behavior of Real Estate Company is becoming more and more important for the credit risk assessment of Real Estate Company. The current domestic credit rating market is no lack of authority, classic credit rating models and empirical methods. However, in terms of specific company credit assessment works, it is often difficult for us. To set up the credit rating model of real estate industry, it has a great significance for the bank credit risk management.In order to build financial and non-financial index systems of the credit rating model, we have selected 13 traditional financial indicators and 11 non-financial indicators as company’s credit evaluation indicators. Factor analysis methods were used to screen the original rating index to obtain comprehensive factor scores. After the cluster analysis work, a correction factor is introduced to the model. Finally the model can achieve the adjustment factor score and the company credit rating. Credit rating results can reflect the level of industry development. The model strengthens empirical conclusions and economic interpretations at the macro level. And the model has a powerful interpretation of its practicality and operability.Finally, through the access to financial reports, we can collect informations about the credit rating of companies to calculate the credit rating model’s abilities of historical interpretation and future forecast, in order to realize the application and promotion of the model conclusion in the actual credit rating work.