With the promulgation of the new Budget Law and Document 43 in 2014 as the symbol，the management of local government debt has entered a regulated development period. The debt risk can be controlled in general，but the implicit debt can not be ignored. As Report on the Work of Government of 2019 illustrated，it is determined to take solid action in the critical battle of preventing risks. Under this background，it becomes top priority to resolve the risks of local implicit debt by stripping the government-related credit and financing functions of local government financing vehicles and promoting their market-oriented transformation. Based on this，this article analyses the urgency of the transformation of local government financing vehicles under the continuous prevention and control of local implicit debt，and discusses the impact of the transformation of local government financing vehicles on their credit strength from the perspective of rating.