Credit risk assessment for Engineering construction

Engineering construction companies often default on the contract expired, which makes the enterprise's own quality and credibility be affected. Therefore, the construction enterprises should be aware that the value of their own credit, financial sector should also be on the borrowers to assess credit risk, so as not to appear in the portfolio risk. This article utilizes the modern credit grading method to evaluate the construction enterprise's Credit rating. The study found: Credit change index has a great impact to transition matrix. It will affect the credit rating changes. Credit Change index ranged from zero when the critical state has a different default status, when the credit quality index greater than zero, the rise in the value of its credit; if the credit quality index is less than zero, the credit quality of the index on the lower level; If zero, credit rating is to maintain the normal status. And adopted from 1994 to 2001 of a regional agricultural water infrastructure investment is calculated examples,and found :credit change index and credit quality index is greater than zero so as to arrive at the credit risk of the project smaller, high credit rating.