Credit Rating System and Method Based on Matching Credit Rating and Default Loss Rate

Abstract

The invention provides a system and a method used for credit rating and based on matching of credit rate and loss given default. The system is formed by a data analysis module, a system maintenance module, a data query module and a report production module. The report production module can be used for storing credit rating results, printing and previewing. The system meets a credit essential attribute that the higher the credit rate is, the lower the loss given default is and avoids the problem that an adjustment result is obtained through infinite multiple adjustment, wherein the adjustment result is the higher the credit rate is, the lower the loss given default is. Under the condition that creditors such as commercial banks understand that different credit rates correspond to default rates, the system can avoids loss caused by the fact that clients under the rate of a break-even point perform loans and reduce loan loss. According to default conditions of different credit rates, reasonable pricing for making up default risk premium is performed on financial instruments of loans, bonds and the like, and the system and the method enable creditors such as commercial banks and bond investors and social public to understand default conditions of each credit rate and perform investment decision.

Description

technical field [0001] The invention relates to a credit rating system and method based on the matching of credit rating and default loss rate, belonging to the technical field of credit services. Background technique [0002] Credit rating has an extremely important impact on contemporary society. Whether it is sovereign credit ratings, corporate credit ratings, bank credit ratings, or personal credit ratings, if credit ratings are unreasonably divided, creditors and the public will be misled. On August 6, 2011, Standard & Poor's announced that it would downgrade the sovereign credit of the United States from AAA to AA+, which caused turmoil in the global financial market. [0003] Credit rating includes steps such as indicator screening, scoring, empowerment, customer scoring, and credit rating division. Among them, the most critical step is the division of credit ratings. [0004] The existing credit rating classification mainly divides the credit rating of customers a...

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Problems solved by technology

[0005] The existing published credit rating-related patents have the following deficiencies: lack of verification of the credit essential attribute of "the higher the credit rating, the lower the default loss rate"

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