The Credit Risk Assessment System Of The City Investment Bond

With the accelerated development of urbanization in China, the pressure of local government expenditure is getting bigger and bigger. The income from the tax revenue can not cover the expenditure of local government. At the same time, China's "budget law" has clearly stated, "in addition to the laws and regulations of the State Council, the local government may not issue bonds". In this context, the local government began to finance through local investment and financing platform, the city investment bond came into being. In recent years, the city investment bond has played a very important role in China's economic growth and social development, it has become an important investment objects of corporate bonds and occupied half of the corporate bond issuance volumes in our country. Since the city investment bond as a kind of investment products, the investors are concerned about the credit risk of the investment product can be reasonably disclosed, as well as their own interests can be legally protected. Therefore, no matter for the long-term development of China's bond market or for the protection of the interests of investors, the study of the credit risk assessment of city investment bond are of great significance.The paper used case analysis, qualitative and quantitative analysis, comparative analysis and other methods. First of all, the generation and development of China's city investment bond are described in detail, and on this basis, the characteristics of the city investment bond in our country are concluded. Then, on the basis of drawing lessons from the international credit evaluation method and combing with the characteristics of the domestic assessment environment, the paper attempt to build a domestic credit risk assessment program. In order to establish a reasonable credit evaluation system, the paper analyzed comprehensively the factors which may affect the credit risk of the city investment bond and designed the model of the risk assessment index system. In empowerment of specific indicators, we use the analytic hierarchy process (AHP method) to set up the index weight of the evaluation system in this paper. On the basis of field survey and data collection, the paper take an city investment company in Changsha district as an example to analyze and test the evaluation effect of this model, which prove the design of this evaluation system is operable. According to the research on the credit risk of the city investment bond, the paper puts forward a series of measures to control the credit risk of the city investment bond from three aspects, such as the state and the government, the city investment company itself and the institutional level.