Optimizing Price of Credit Default Swaps for Dynamic Project System of Public-Private Partnership

Table 4

Credit rating after the credit enhancement of various financing structures of equity-like debt.

Credit Enhancement	Conditions	Support Rating
Project company’s full premiums repurchase + third-party’s joint guarantees	_
Project company’s full premiums repurchase + third-party’s making up principal and interest shortfalls	(a) substantial guarantee effect, and the terms in the agreement substantially cancel the guarantor’s counterplead right
	(b) only a substantial guarantee effect
	(c) no guarantee effect
Project company’s principal repurchase + third-party’s making up principal and interest shortfalls	(a) only a substantial guarantee effect
	(b) no guarantee effect	_
Project company’s principal repurchase +profit supplement, or project company’s full premiums repurchase of principal and interest	_