Research On The Construction Of Credit Rating Model For Credit Bond Issuers

Credit bond is one type of different bonds.Like issuing stock financing,Issuing credit bond financing is one of the two main ways of direct financing.When companies raise funds through bond issuance,the funds obtained are usually longer than the funds obtained through the loans.The issuance of bonds will not be subject to many restrictions imposed by the loan contract.Also,by issuing bonds,enterprises can both optimize the capital structure and build a“tax shield”.Therefore,the issuance of credit bonds is a good financing method for the company.By referring to the research results of Loss Given Default(LGD),combined with relevant theories and literature,this paper attempts to find out how to build the LGD-based credit rating for credit bonds issuers by using the data from 2009 to 2019.The construction and research of credit rating is the innovation of this paper and there are few related researches in China.In the process of developing the LGD model,this paper introduces the measurement and transformation of LGD and the selection process of characteristic variables in detail,and uses the methods of Logistic regression model and Beta distribution simulation to analyze and detect the relevant data.The final result shows that the stability and reliability of the model are very good and have certain reference significance.