In the recent years, SMES have been playing an increasingly prominent role in social economicdevelopment. However, due to insufficient stability of its own development, unsoundfinancial systems, low information transparency, lack of necessary guaranteeand mortgage and for other reasons, most of SMES are Plagued by financing issues. The establishment of credit ratingsystem for SMES is one of the alternative approaches to solve this problem.

As there are generally issues like defective andnon-transparent financial data existed in SME, FECR’s credit rating standard forSMES different from that for large enterprises,Credit rating for SMES will bemore focus on qualitative factors such as investigating its equity strauctureand trading,background and credit status of actual controller,managementquality,corporation competitiveness,development prospect quantitative factors appropriately.

For credit ratingof medium-sizedand small entities, FECR is dedicated to providing market participant subjects withindependent, fair and objective credit information on medium-sized and smallentities evaluated so as to reduce information asymmetric issues between medium-sizedand small entities.