In May 2008, China Banking Securities Regulatory Commission and The People’s Bank of China issuedGuidance on Experiment of microcredit Companies’, which marked thebirth microcredit financing. Microcredit company, invested by natural person,corporation sand other social organizations, without absorbing publicdeposits,t he limited liability company or limited company. Elements of riskevaliluation of microcredit companies made by FECR include: shareholdersbackground, management quality and governance structure, risk management, assetquality, capital status, asset liquidity, debt paying ability, profitability,development prospect and regional financial environments.

Since 2011, FECR has developed microcreditcompany credit rating in Shanghai, Jiangsu, Guangdong, Hunan, Heilongjiang, Chongqing,Jiangxi, and Qinghai. FECR hasaccumulated rich experience in microcredit companies credit rating, and hasfostered professional rating teams, with rating reports and results widely used in banks, microcredit companiesand regulatorors.