Research On Debt Risk Prevention And Control Of The Financing Platform Company A

As the main body of local government debt,the financing platform companies play active role in the development of urbanization in China,promote the rapid development of infrastructure construction,and expand the supply of public goods.However,due to the single debt structure of financing platform companies and the lack of a reasonable debt warning mechanism,potential debt default risk is higher.In 2014,the State Council's Opinions on Strengthening Local Government Debt Management(Guo Fa[2014]No.43)clarified that the financing entity of government debt is only the government and its departments,divesting the government financing function of the financing platform companies.However,in recent years,local financing platform companies have become the main body of local government debt,fulfilling the government financing function.Most local financing platform companies have no hematopoietic function and continue to lose blood,as a result,the potential risk of default has increased.Since 2016,China's capital market has frequently exposed credit defaults,the scope was extended from private enterprises to central state-owned enterprises and local state-owned enterprises.Therefore,analyzing the debt risk of a single financing platform company is more targeted and helps the company to understand its own debt risk and further propose effective solutions to reduce the probability of debt default risk.In this article,we sorted out the theories and analyzed the applicability of each model,then we chose the KMV model to measure the debt risk of financing platform companies.Through the calculation of KMV model,it is found that the overall debt risk of the transportation financing platform companies are relatively large.Among them,credit rating decreased of the financing platform company AA-in the first half of 2018,so it was used as the research object to analyze the default risk,and further proposed the company's debt risk prevention recommendations.First,on the basis of understanding the status of debt risk of financing platform companies.Analysis of the company's debt status,such as the development,debt situation,business status and organizational structure of the financing platform company A,empirical test of the default risk of the financing platform company A,calculating the default distance of 2.3815,default probability of 0.8620%.Compared with the same industry financing platform companies and ST companies,we qualitatively and quantitatively analyze the debt risk of the financing platform company A.According to the research results,we put forward relevant countermeasures for the default risk of the financing platform company A,mainly for the financing platform company A need to Optimize multiple common governance mechanisms,establish a debt risk early warning mechanism,optimize its own asset structure and improve the professional quality of the talent team;the state need to improve the relevant system formulation and administrative assessment mechanism,bank perfect loan review process.