The enterprise credit rating was issued on November 26, 2019 by the People's Bank of China, the National Development and Reform Commission, the Ministry of Finance, and the China Securities Regulatory Commission. The "Measures" clarify the policy guidance for the standardized development of the credit rating industry, and establish a sound institutional framework for unified supervision. The concept of "credit rating" has been clearly defined: credit rating refers to the analysis of credit risk factors that affect economic entities or debt financing tools by credit rating agencies, and a comprehensive evaluation of their debt paying ability and willingness to repay, represented by pre-defined credit rating symbols. It refers to the analysis and research of various credit risk factors that affect rating objects by independent credit rating agencies, and the comprehensive evaluation of their ability to repay debts and their willingness to repay debts, which is represented by simple and clear symbols.
In bidding activities, most bidding parties also value the bidder's corporate credit rating as one of the important factors to judge the bidder's business management ability, credit status, and development prospects. Therefore, the credit rating of enterprises is very important for bidders. The credit rating of enterprises adopts a percentage system. According to the score, the credit rating of enterprises is divided into five levels: AAA, AA, A, B, and C:
1. AAA enterprise
A score of 90 or above, with full scores for asset liability ratio, interest repayment ratio, and maturity credit repayment ratio indicators. The cash flow indicator score should not be less than 5 points. If one item fails to meet the requirements, it can only be rated as AA level.
2. AA level enterprise
The score ranges from 80 points (inclusive) to 90 points (exclusive), and the asset liability ratio and interest repayment ratio indicators have full scores. The maturity credit repayment ratio indicator score should not be less than 10.8 points, and the cash flow indicator score should not be less than 3 points. If one item fails to meet the requirements, it can only be rated as Grade A.
3. A-level enterprise
The score is 70 (inclusive) to 80 (exclusive), and the asset liability ratio index score should not be less than 5 points, the interest repayment rate index score should not be less than 8.1 points, and the maturity credit repayment rate index score should not be less than 9.6 points.
4. B-level enterprises
Scores range from 60 (inclusive) to 70 (exclusive); Or scored above 70 points, but with one of the following situations:
(1) Industries restricted by the state for development;
(2) The asset liability ratio score is below 5 points;
(3) The interest repayment rate score is below 8.1 points;
(4) The maturity credit repayment rate score is below 9.6 points.
5. C-level enterprises
Score below 60 points (excluding); Or scored above 60 points, but with one of the following situations:
(1) Production equipment, technology, and products are explicitly phased out by the state;
(2) Insolvency (3) The enterprise has ceased production for more than six months;
(4) Behavior of evading or abolishing bank claims
(5) The interest repayment rate score is below 2.7 points;
(6) The maturity credit repayment rate score is below 3.6 points.
2.2 Meaning of Enterprise Credit Rating
AAA level: Extremely strong long-term debt repayment ability, with minimal likelihood of credit risk loss