The rating of the local government credit difficult

Local government is a special kind of evaluation main body, in terms of rating ideas and elements with industrial and commercial enterprises. Three international standard &poor's,Hot Expanded welded spiral steel tube a rating agency, moody's and fitch rating of local government in the United States, are made according to the individual credit rating and external support factors of local government, to the comprehensive evaluation of local government's credit rating. To borrow the experience of the three major rating agencies, the Chinese academy of social sciences and in debt credit for China's local governments are adopting "individual support +" rating train of thought, in full consideration on the basis of the characteristics and development trend of China's local governments,carbon steel spiral welded tube summing up the rating of the local government itself factors, as well as the external support rating elements, to establish the local government's rating method.

Look from the rating factor, individual credit risk of local government focuses on economic strength, financial strength, the government governance, regional financial ecological environment and so on four level of evaluation index; External government support factors focus on the support of local government credit level, political importance,large diameter ASTM end cap for water pipe and economic importance, the risk of moral hazard and historical support four evaluation index.

"To local government ratings must be balanced with the risk of regional differences and local government transition." When people speak in a banking also pointed out.
In addition, to participate in the seminar of many in the industry have also said the credit rating is not an easy task for China's local governments.Director of bond credit rating in the bell said,SCH80 ERW Steel Pipe local government credit rating in China is still in the phase of "simulated dish". In some ratings on key points, also controversial, such as our country the government at a higher level and the relationship between the government at a lower level evaluation, whether selling off its "emergency" of state-owned assets, paying off its debts, etc. In addition, local financial data and relevant financial data transparency and debt deal with insufficient standard also bring challenge rating data access and accuracy.

"China's local governments spare no effort to use the local financial resources to development in recent years, the government's degree of economic and financial intervention is more and more deep, the rating agencies may understanding the assets and liabilities of the local government to bring greater difficulty." A experts attending the meeting of the economic information daily, reporter said.

The personage inside course of study points out, the local government credit rating system to establish a long way to go. Local debt rating is not based on one year of data can be concluded that need a certain continuity. Therefore, although the build system of local government debt is big, but it is hard to happen overnight.