Analysis in Credit Risk of Listed Company Based on KMV Model

This paper measures companies´ credit risks and qualitatively analyzes the relationship between credit risks as well as capital structures by calculating the distance to default of listed companies. It draws a conclusion that the corporate credit risk correlates closely to corporate capital structure ratio. The more liabilities of a company are, the less possibility for it to repay its debt will be, which mean, larger credit risks. Meanwhile, the higher assets-liability ratio is, the corresponding higher equity ratio and rights and interests multiplier are.