Local government rating refers to the rating on a bond issued by a local government or public institution with fiscal revenue. Local government bonds usually are spent for the development of local public facilities, such as transportation, telecommunication, residence, education, hospitals and swage treatment. It is guaranteed by the tax revenues of local government. In 2014, the Ministry of Finance released the Measures on the Pilot Issuance of Local Government Bonds, following which the tested local governments were allowed to choose rating agencies for rating their bonds to be issued.
