Case Research On Asset Securitization Credit Risk Management Of PPP Projects Of Capital Company Limited

As the country pays more and more attention to environmental protection issues,sewage treatment PPP projects are booming in China.But at the same time,there are also problems such as insufficient liquidity of funds and single financing channels.Therefore,in 2017,China solved the financing dilemma through the deep integration of PPP projects and asset securitization,and the asset securitization of PPP projects has been widely used in the sewage treatment industry.However,in the actual operation process,problems such as poor management,unstable cash flow and asymmetric information are also exposed,which brings great credit risk to the products.In order to realize the smooth development of asset securitization of PPP projects,it is necessary to control credit risk strictly,However,domestic research in this area is almost blank,so it is particularly important to research on the credit risk of asset securitization of PPP projects.This paper selects the typical domestic case of the Capital Company's asset securitization of PPP project for research.Firstly,domestic and foreign literatures were consulted to find out the shortcomings of existing researches in the credit risk management of asset securitization of PPP projects,and appropriate methods were selected to carry out the research.Secondly,read the specification and annual reports of this product,sort out information of product risks,and know the existing risk control measures,in order to find out the defects of credit risk management.Discovered that the most important problem is the inaccurate risk identification,so risk control measures are lacking of targeted;Thirdly,according to the rating framework and the operation of this plan,choosing scientific method to systematically identifying the risk factors from four aspects which consisting of basic assets,transaction subject,transaction structure and policy system,then using the AHP model to sort the influence degree of various factors.Based on the result,it is concluded that the unstable asset has the greatest impact on the credit risk;finally,according to the result of risk assessment,the further improvement suggestions will be proposing to manage the credit risk and provide reference for the credit risk management of domestic asset securitization of PPP projects.