Research On Development Of Local Government Credit Rating

Credit rating is a crucial part of local government bond issuance in China,the introduction of credit rating can regulate and guide the debt financing of local government,plays a role in information disclosure,risk disclosure and the price discovery to investors,and promote a healthy development of local government bonds market in China.The accuracy of credit rating is based on the integrity of the data.In general,the balance sheet is the basic information for credit rating agencies when they rate a business or a financial institution.China is starting to work out the government comprehensive financial report which includes government balance sheet,but it has not been released.That is to say,the credit rating company is almost impossible to give an objective rating result.The bond market hopes to further enhance the independence of the credit rating work,the central government and credit rating agencies are trying to further refine the existing rating of all levels,which can provide objective and reliable references for investors to enter the local debt market.This paper sets Tianjin as an example in local government credit ratings,to clarify the relationship between government and credit rating company,to explain the relationships of credit rating and comprehensive financial reports,to anatomize the credit rating system,to analyze the credit rating market and the existing problems,to further improve the quality of local government credit ratings,and to give some suggestions on distinguishing the credit rating classes.This article can be divided into six chapters.The first chapter introduces the research background and significance,research framework,research status both at home and abroad,the innovation and insufficiency of the research points,and the further research direction.The second chapter explains the relevant theories of the government credit ratings and comprehensive financial report and the close ties between them.The third chapter analyzes the present situation of local government credit ratings.The fourth chapter mainly compares the difference of three major international credit ratings companies on local government bond credit ratings and intends to provides enlightenment to our country.The fifth chapter sets Tianjin as an example to explain the work of local government credit ratings and government comprehensive financial report,and to present the existing problems.The sixth chapter puts forward to giving suggestions on optimization of Tianjin government credit rating work.