What are the main evaluation contents and indicators of credit rating?

Credit rating can be divided into comprehensive evaluation and individual evaluation according to the evaluation content. It evaluates the credit status of customers' various debts, puts forward the comprehensive credit rating, and represents the comprehensive judgment of corporate customers' various debts. 2. Personal evaluation. That is, to evaluate a specific debt in a targeted manner, such as credit rating for long-term bonds, short-term bonds, long-term deposits and specific construction projects. Bond evaluation is a typical example of individual evaluation, and the method of "one debt and one evaluation" is usually adopted. 1) quantitative indicators are mainly used to evaluate the financial risks of the evaluated enterprise, and to examine the accounting quality, mainly including: 1, asset-liability structure analysis, and to understand the management's financial management concept and the application strategy of financial leverage, such as whether the debt maturity arrangement is reasonable and how the enterprise can repay it. If the debt due is too concentrated, the risk of not being able to meet the expenses will increase obviously, and excessive dependence on short-term loans may aggravate the risk of refinancing. In addition, if there are debt items in the enterprise's financial leasing and pending litigation, it will also increase the debt burden of the assessed object, thus increasing the enterprise's demand for cash flow and affecting the rating results. 2. Strong profitability and its stability are the key factors for enterprises to get enough cash to repay debts due. Profitability can be measured by sales profit rate, return on net assets, return on total assets and other indicators. At the same time, analysts should make an in-depth analysis of the source and composition of profitability, and on this basis, judge the main factors affecting the future profitability of enterprises and their changing trends. 3. Adequacy of cash flow Cash flow is the core index to measure the solvency of the assessed enterprise, among which analysts should pay special attention to the net cash flow generated by the business activities of the enterprise. The proportion of net cash flow, retained cash flow and free cash flow to the total debt due can basically reflect the degree of debt protection of the assessed enterprise's operating cash. Generally speaking, the cash flow adequacy standards of different industries are different. Analysts usually compare the assessed enterprises with similar enterprises and make an objective and fair judgment on the cash flow adequacy of the assessed enterprises. 4. Asset liquidity is the liquidity of assets, which mainly examines the proportion structure of current assets and long-term assets of enterprises. At the same time, analysts also reflect the speed of converting current assets into cash through indicators such as inventory turnover rate and accounts receivable turnover rate to evaluate the solvency of enterprises. [Editor] (II) Qualitative indicators Qualitative indicators are mainly divided into two parts: first, industry risk assessment, that is, assessing the current situation and development trend of the industry in which the company is located, the macroeconomic boom cycle, the national industrial policy, the seasonal and cyclical effects of the industry and product market, and the entry threshold and technology update speed of the industry. Through these indicators, we can evaluate the future stability, asset quality, profitability and cash flow of enterprises. Generally speaking, industries with a high degree of monopoly have more guaranteed profits and lower risks than those with free competition. The second is business risk assessment, that is, analyzing the market competitive position of a specific enterprise, such as market share, patents, R&D strength, business diversification, etc. , including: 1, basic business and competitive position, business history, business scope, diversification degree of leading products and products, especially the proportion of main business in the overall income and profit of the enterprise and its changes, which can reflect whether the income source of the enterprise is too concentrated, thus making it profitable. In addition, factors such as enterprise marketing network and means, dependence on major customers and suppliers are also the key points to be considered. 2. The management level examines the quality and stability of enterprise management, whether the industry development strategy and business philosophy are clear and steady, and whether the corporate governance structure is reasonable. 3. Related party transactions, guarantees and other repayment guarantees. If a powerful enterprise provides repayment guarantee for the rated object, the credit rating of the rated object can be improved, but the analysts of credit rating agencies should evaluate the possibility and intensity of the guarantee. In addition, government subsidies and parent company's support agreement for subsidiaries can also improve the rating results of subsidiaries to some extent.