New Century Credit Rating

New Century Ratings is a credit rating agency established in Shanghai in 1992. The company's main business covers credit and bond financing, asset securitization, and financing for overseas enterprises issuing panda bonds in China while providing credit rating services to China's real economy, financial institutions, and local governments.

The development history is as follows:

1. 1992-1996: In its early stages, the company focused on credit ratings and developed a bond rating system in 1992. It also published the book "Credit Rating" that introduced credit rating theories and methods.
2. 1997-2004: As China's securities market gradually developed, the company adjusted its business structure to prioritize credit enterprise rating, forming various businesses such as credit evaluation, securities investment consulting, management consulting, and asset evaluation, and obtained qualifications for bond rating business.
3. 2005-2012: As a "fully qualified" rating agency, its bond rating business grew rapidly, forming an initial theoretical research system.
4. 2013-2018: Utilizing international rating methods and technical research, the company expanded to develop multiple credit rating methods.
5. New Development Stage (2019 to present): New Century Ratings completed the registration of a credit rating agency according to the "Interim Measures for the Administration of the Credit Rating Industry" jointly issued by four departments and actively responded to changes in the domestic and international market environment while expanding international business. The company provides credit rating services for overseas enterprises issuing panda bonds domestically.

The business scope of New Century Ratings includes:

1. Credit Rating Services: Providing credit ratings for credit and bond financing, asset securitization, and financing for overseas enterprises issuing panda bonds for China's real economy, financial institutions, local governments, etc. The rating services cover all provinces and cities in mainland China, the Hong Kong region, and some overseas countries and regions.
2. Green Certification Services: As a third-party certification agency for green bonds, it provides green bond framework certification, project certification, ongoing tracking certification, and other services to help issuers improve the market recognition and attractiveness of green bonds.
3. Investment Consulting Services: Providing investors and issuers with investment consulting and information services, including market analysis, product design, risk management, and other support aspects.
4. Credit Research Services: Conducting macro credit research, regional credit research, industry credit research, bond market research, rating market performance research, sovereign credit observations, special research, and more to provide market participants with credit analysis reports and data support.

The main rating rules of New Century Ratings include the following points, according to its "General Introduction to New Century Rating Methodology (2022)“:

1. Definition and Principles of Credit Rating: Credit rating is an anticipatory, experiential, empirical, and comprehensive evaluation of the credit risk of debt instrument issuers and debt instruments, expressed in symbols. Ratings should adhere to principles such as combining history and prediction, experience and empiricism, external and internal factors, quantitative and qualitative aspects, and individual and support factors.
2. Credit Rating Methodology System: The rating methodology system is divided into two levels: general credit rating methodology and each business sector's credit rating methodology, mainly including four categories: industrial and commercial enterprises, public financing, financial institutions, and structured finance products.
3. Credit Rating Methods and Models: The determination of the rating framework is mainly based on the principle of combining individual and supportive ratings. Based on achieving the main model level, issues rating logic is used to obtain the issue model level. The main model level is derived according to each subject's rating method model, including the analysis of external factors, initial levels, adjustment factors, individual levels, and support factors. The issue model level is determined according to factors such as the issuer's credit status, the priority of debt repayment, and the term of debt repayment.