Scheme

Data-driven Risk Control: Supported by data and industry experience, the company provides one-stop credit risk management solution to investment institutions. The package includes four dimensions, i.e., dynamic risk database + intelligent assessment model + risk management system + expert review. The solution aims to help risk control and investment personnel to identify credit risk faster and more holistically. It provides basic bond risk data, nearly 400 risk indicators, and a quantitative credit rating model system that covers the entire bond market. The solution also conducts real-time monitoring as well as credit warning analysis. Once identified, the risk is reported to the relevant parties immediately.

Credit Enhancement: Based on internal rating and risk control standards, the company evaluates credit risk of bond issuers and the assets. It also provides financiers with credit enhancement services and structured financing, if risks are identifiable and can be contained.

Credit Rating: Based on the proprietary rating methodology and model, the company provides qualified issuers with credit rating services, which include ratings for corporate credit, corporate bonds, asset-backed securities, collective trust funds, financial institutions, corporate governance and overseas dollar bonds.

Problem Solving

As credit defaults become a norm in China’s credit bond market, investors need to assess the credit risk of the investment target comprehensively and efficiently. Investors need to avoid the risk of default and find investment targets that satisfy their risk preference

Financiers are also required to demonstrate their credit status, sometimes through an independent third party guarantor, to raise funds and reduce financing costs

Application case

Certain large bank’s asset management department

The client aims to improve the application of information technology in credit risk management and decision-making analysis in the field of asset management. After competitive bidding, the technical scheme in CSCI’s integrated solution of “data, model and system” was much better than those of its rivals and received recognition from the client.

The scheme covers asset management scenes before, during and after investment, realizes data-based management, automated operation and intelligent analysis of bond credit evaluation, adopts finance plus technology to improve the asset management department’s efficiency of bond credit analysis in daily investment decision-making.

Certain large financial service management agency

The agency is an important infrastructure service in China’s capital market. The client desired to establish an internal rating system to improve the initiative in bond credit risk management and strengthen differentiated and delicacy management of bonds. After competitive bidding with famous domestic or foreign institutions, CSCI won the contract, and CSCI’s integrated solution of “data, model and system” was accepted by the client. The scheme helps the client to build a system of risk data mart and assessment model, realizes implementation of the management system, significantly improves the efficiency in building of an internal evaluation system, successfully establishes and strengthened the client’s credit risk management system.

Certain large securities broker

With its fixed income investment exceeding 100,000 million yuan, the securities broker took a lead in the industry. Due to lack of timely and efficient basic data support in credit risk management, the broker had a low efficiency in internal evaluation decision-making. After detailed comparison, the client purchased CSCI’s credit risk data services, which significantly reduces the burdens of reduced relevant personnel engaging in credit rating and risk management in collection of basic data, and enables credit rating experts to more focus on advanced works in credit analysis. In addition, the unifying of credit risk evaluation standards for all businesses renders credit rating results more accurate and valid, thereby improving the decision-making efficiency.

Certain large industrial enterprise

After suffering hostile attack by overseas short sellers and downgrading of rating by international rating agencies, certain large industrial enterprise conducted careful demonstration, and determined to adopt the international rating services by Pengyuan International. Pengyuan International has conducted detailed credit analysis of the enterprise. Experienced international rating analysts carefully studied the operation state of the enterprise and the events in its history, and looked ahead to the future. On the basis of the original thinking of China’s credit features, and according to the international rating methods announced to the international market and reported to Hong Kong’s SFC, Pengyuan International gave the enterprise an international rating of “BB”. Besides, Pengyuan International held an international investor network meeting on such rating, in which the analysts of Pengyuan International stated positive and negative arguments towards international investors to ensure the openness, transparency, objectivity and fairness of the international rating. After Pengyuan International announced the international rating, the enterprise was listed at Singapore Exchange for issuing of bonds and obtained oversubscription at over 3 times. Within several months of the assignment of international rating, another two international rating agencies assigned higher rating to the enterprise.

Certain international non-bank financial institution with funds from China

Certain international non-bank financial institution with funds from China for the first time engaged an international rating agency for international rating, and Pengyuan International was selected to the project as the only international rating agency with funds from China.

In the face of a tight project schedule, Pengyuan International gave full play to its team’s flexibility, strictly followed the internal rating process and guaranteed rating quality, adopted the international rating methods announced to the international market and reported to Hong Kong’s SFC, Pengyuan International gave the institution an international rating of “A-”.

After Pengyuan International announced the international rating, the enterprise was listed at Hong Kong Stock Exchange for issuing of bonds and met the issuing criteria at IPO.