Abstract LC is to occupy a leading position in the international settlement of a settlement,because simple,The relatively small risk characteristics in the world most widely used in international trade settlements.However,the letter of credit settlement is "purely a transaction documents",in practical application it has often lawless use of the parties so that it is full of uncertainties.to a substantial risk for both trading and banking.This paper from the credit risk faced by the parties and their corresponding preventive measures,was introduced in detail.have to learn from and help in practice.Key words :credit risk