Assessment Standard of Enterprises’ International

Credit Rating and Promotion

4. Functions of Enterprises’ Credit Rating

Credit rating is an important content and the basis of constructing the social credit system.

In an economic environment in which information is not symmetrical, objective and fair credit assessment can greatly decrease the contract risks of the unprivileged side and transaction cost of both parties, and elevate their willingness to conclude the transaction. Credit assessment results have been widely used in enterprises’ cooperation, commodity transaction, project investment, bidding, financing and investment. Governmental departments have attached increasingly importance to enterprises’ credit status in exerting administrative functions.

Functions of credit rating to assessed objects: 

1. Credit rating is an effective way for building enterprises’ good credit images.

2. Credit rating is the passport of enterprises to gain international market.

3.  Credit rating can provide objective and fair evidence of credit grades and comprehensive competitiveness for enterprises.

4. Credit rating is a necessary method to enhance enterprises’ management and risk prevention.

5. Credit rating enlarges enterprises’ financing channels, stabilize financing sources and decrease financing cost.

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