What is a Credit Rating?

A credit rating is a rating category that a credit (credit rating) evaluation agency assigns to an enterprise's creditworthiness based on the results of an enterprise's creditworthiness evaluation, and it reflects the level of creditworthiness of an enterprise. Western countries delineate corporate credit ratings, and some use AAA, AA, and A three-levels, and some use three types of nine-levels, that is, 3A, 3B, and 3C, to guide investors' behaviors by designating corporate categories. The credit evaluation and rating of Chinese enterprises began in the 1980s. Generally, enterprises are divided into three types of classifications. Some places use foreign representations, that is, AAA, AA, and A classifications. In the Chinese way of expression, they are called first-, second-, and third-tier enterprises. Different credit levels will greatly vary the difficulty and conditions for companies to raise funds in the market and obtain bank loans. ^[1]

Credit rating

The setting of Credit Rank refers to the user of the rating result through a certain symbol on the basis of rigorous analysis.

Provide easy-to-understand credit quality information that reflects the creditworthiness of rating objects. Credit rating setting is a way of expressing and transmitting evaluation information. If the rating symbol is complicated and difficult to understand, and the meaning description is obscure, then such evaluation information will be difficult for investors to understand and accept. Therefore, it is necessary to scientifically and rationally set the credit rating, and the setting of the credit rating should be simple and clear, and it should be universal and understandable.

For Chinese companies

The credit rating process is as follows:

1. Rating team reports

The assessment content of tax credit rating is that the taxpayer complies with tax laws and administrative regulations and accepts the management of tax authorities in accordance with the provisions of tax laws and administrative regulations.

(I) Tax registration

1. Business registration

2. Withholding tax registration;

3 Registration of tax changes;

4 Use of registration documents;

5. Annual inspection and certificate replacement;

6. Bank account report;

7. Tax identification status (including general taxpayer identification, etc.).

(II) Tax declaration

1. On-time tax declaration rate;

With the implementation of national policies to stimulate consumption and stimulate domestic demand,

China Credit Development Report

On July 11, Dagong International Credit Rating Co., Ltd., an independent rating agency of China, issued the first batch of credit ratings of 50 typical countries in Beijing. This is the first time that China and the world s first non-Western country rating agency has released national sovereign credit risk information. Experts believe that Dagong's move marks the start of China's independent rating agency as an emerging rating force on the international credit rating stage. On the same day, Dagong also released the National Credit Risk Report 2010. It is understood that it is the first time in the international credit rating industry to issue an overall predictive report on the future global credit needs and credit risks of countries. Striking national credit ratings of China, the United States, France, Germany and Japan

"Dagong's first batch of 50 national credit ratings basically reflects the typical characteristics of credit risk in major regions of the world, as well as the global layout and changes of national credit risk." Said Lin Wenjie, general manager of Dagong's National Risk Department. In five global continents, 20 European countries, 17 Asian countries, two North American countries, six South American countries, three African countries and two countries in Oceania, the gross domestic product of 50 countries accounts for 90% of the total world economy.

According to Lin Wenjie, from the perspective of the overall credit level, 72% of the countries with a local currency investment grade or above (BBB- and above), 28% of the countries with a speculative grade (BB + and below), 74% of countries with a foreign currency investment grade or above 26%. From the consistency of domestic and foreign currency levels, there are 38 countries with the same domestic and foreign currency credit ratings; three countries with domestic currency levels lower than foreign currency levels; and nine countries with domestic currency levels higher than foreign currency levels.

At the press conference, the most noticeable was the sovereign credit rating of Dagong on major countries such as China, the United States, Britain, France, and Germany. Dagong s national credit rating for China is AA + and foreign currency AAA; the U.S. rating is AA + and foreign currency AA; both the UK and France s domestic and foreign currencies are AA-;

Moody's, Standard & Poor's, and Fitch's three major ratings on China are A 1, A +, and AA-; the United States, Britain, France, and Germany are AAA; Japan is AA 2 , AA, and AA-.

It is found by comparison that Dagong and the three international rating agencies have significant differences in the evaluation of the credit ratings of China, the United States, Britain, France, and Germany.

"Comparative analysis of Dagong's national credit rating and the rating results of three US rating agencies clearly reflects the differences in judgments on the solvency of specific countries under the guidance of different rating concepts." Wei Benhua, the former deputy director of SAFE, told reporters that compared with the international rating system represented by the three major US rating agencies, Dagong has significant differences in its rating stance, thinking mode, theoretical system, and analytical methods. ^[2]