1. Finance Product Credit Rating
Taking credit of fundraising participants into consideration, this product gives rating to different finance projects, including supply chain, infrastructure and structured finance.
a. Supply Chain
Overview:The credit rating of supply chain is based on the environment of supply chain finance, and is targeted at the fundraising participants.
Application:It reveals credit risks of fundraising participants, and expedites enterprise risk evaluation and identification so as to lower bad debt risks. In turn, it highlights those who have a fine credit record. Therefore, information on supply chain would be more transparent to raise financing efficiency.
Overview:The product focuses on debt repayment ability of world infrastructure projects, which raise funds in the form of projects and repay the debt by cash flow from operating cash flow. Dagong’s credit rating on infrastructure projects takes into consideration the risks in construction and operation. Meanwhile, for the first time, it introduces “green rating”, comprehensively assessing credit risks of infrastructure projects by considering projects’ sustainability and adequacy of debt repayment resources.
Application:First, it monitors, in real time, risks in construction and operation of infrastructure projects, providing valuable information for investors. Also, it facilitates investment by rating projects with high credit and green bond projects. In addition, it improves infrastructure projects management to prevent credit risks.
c. Structured Financing
Overview:Structured financing rating is based on credit methodology uniquely created by Dagong, and its objectives include special creditors’ rights that have future independent cash flow, rights to earnings, and carriers with special purposes for property assets.
Application:Structured financing product is applicable to revealing credit risks and offering valuable investment information on structured financing products. It can also be exploited in terms of financing facilitation by rating quality structured financing products, improving structured financing management and preventing risks.
2. Funds Rating
Funds rating is a comprehensive evaluation of the asset management capability of fund companies based on an overall investigation into their ability for wealth creation and risk control.
Funds rating is an evaluation on the fiduciary management of funds companies, neither credit rating of funds companies which is an evaluation on debt service of companies being rated, nor rating for fund products which are prospects on the investment risk and return of certain fund.
Funds rating provides investors and other market participants with a reference in evaluating the asset management ability and risk control of the funds companies.
3. Commercial Papers Rating
Commercial papers rating is an overall review on the possibility of the bill’s payment at its maturity with the consideration of the debt repayment ability of acceptor or sponsor as well as the characteristics of the bill.
Commercial papers, grouped by the target of acceptance, consist of commercial acceptance bill and bank’s acceptance bill. The former is accepted by non-bank payer, while the latter by the bank. Therefore, credit grades for commercial papers depend on evaluating the solvency of non-bank acceptors with the consideration of characteristics of the bill; however, credit rating for bank’s acceptance bill bases on evaluating the solvency of the bank acceptors along with the characteristics of the bill.
Dagong rating methodologies for commercial papers not only refer to the general analysis methods of the general rating methodologies of Dagong financial, industrial and commercial enterprises, but also reflect the bill’s own characteristics in choosing rating elements and designing rules.
Commercial papers rating provides investors, applicants for a discount and other market participants with a reference in evaluating the credit risk on the bill’s maturity.
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