A Rating Agency Case Study On The Credit Rating Of Wuyang Bonds

In recent years,the originally high-speed development of the Chinese economy has begun to be in a downturn,and the downward pressure on the economy is high.The potential credit risk of the Chinese bond market is gradually exposed,and bond defaults have entered a high-issue period.On August 14,2017,the "15 Wuyang Bonds" issuer Wuyang Construction Group Co.,Ltd.failed to pay back the resale and interest payment funds,causing a substantial default;at the same time,"15 Wuyang 02" triggered cross-default clauses.In August 2018,the A credit rating agency responsible for the bond rating was severely punished by the China Interbank Dealers Association.This article hopes that through this case analysis,credit rating agencies will pay attention to bond credit risk,and provide some reference and reference for subsequent bond credit risk assessment.This article mainly uses the case analysis method and the index analysis method to study the credit rating of "A Five-Yang Bond" by A rating agency.The first chapter explains the background,significance,content and innovation of the research;the second chapter introduces the relevant theoretical knowledge of credit rating;the third chapter gives a general description of the credit rating event,including the rating subject,Steps,results,and violations and penalties of the “Five Ocean Bonds”;Chapter 4 is a detailed analysis of this case in accordance with the process described in Chapter 3,revealing that the problems in the rating mainly lie in the preliminary investigation of the rating business,Financial risk identification in rating analysis,rating models,and the self-regulation of rating agencies,and discusses the quality of the credit rating results;Chapter Five firstly based on the above chapters,it analyzes the rating of "Five Ocean Bonds" on A The institution's three revelations are that credit rating results have a significant impact on the default of bonds,and strengthening the details of the rating process will help to strengthen the quality of ratings and improper ratings will lead to structural problems in the market.Secondly,Chapter 5 also proposes that if domestic rating agencies want to improve their own rating capabilities,they must strengthen their rating business investigations,improve their rating technology,focus on follow-up rating,and improve their internal control management and compliance.Finally,this chapter proposes that only by forming a unified regulatory system,alleviating conflicts of interest of ratings,and insisting on the marketization,localization,and internationalization of rating agencies can truly promote the improvement and development of China's credit rating industry.