Dagong Reforms Collateralized Loan Obligations Rating Methodology

发布时间:2016-12-23 12:17:02    点击:


  Since 2015, the development of asset securitization in our country shows a blowout situation. In July, the central Treasury securities registration and settlement companies released the asset securitization development report of 2016, which shows 289.227 billion securitized assets has been published by the first half of 2016 in China, with year-on-year growth of more than 70%. However, the insider points out that the risk of asset securitization market is also worth paying close attention to.

  The new rating method can hold more risk

  On 12th September, Dagong released the original creation of the new asset securitization rating method in Beijing. Compared to the current rating method with "default rate" as the core, Dagong takes source of repayment as core, whose foundation is their wealth creation ability.

  Wealth creation ability, source of repayment and the debt burden are three core elements of rating. Dagong assets securitization rating method insists that wealth creation ability as the foundation of source of repayment and source of repayment as the guarantee of debt repayment. On the basis of analyzing every asset credit quality, solvency safety index is concluded. Then by combining each security index, build a composite solvency safety index.

  The innovation of Dagong’s new assets securitization rating method is that the same risk evaluation method on three elements of credit relationship, following the rules of credit relationship; the releasing from the risk of asset securitization formed by other credit relationship.

  National financial system security needs new method

  Gross national product (GNP) grew 8 times from 2000 to 2015 and the scale of national debt also rose by 1514.5%, which led to the situation that the total national debt accounted for 249% of GNP in 2015. Huge stock of debt determines the future way of asset securitization of debt and a significant role in the nation's financial system. On the other hand, the old asset securitization rating method cannot control risk well. It is proved by the first case of default of asset securitization. In May 2016, "14 profit optimum 02", the priority in A file of "the special asset management plan on the usufruct of West Dacheng of the Yellow River bridge toll revenue” failed to release payment notice. In conclusion, all of that determines that National financial system security needs new method to avoid more risk.

  Dagong’s a new method of asset securitization rating which can reasonably control the financial risk exactly is the escort for the country's financial system security. Dagong as a national brand in the field of credit rating, its original asset securitization rating method already appeared on the scene to play an important role in the financial security system in China.