Abstract: The associated credit risk and relevant contagion is a hot and difficult problem in modern credit risk management field. Based on the average field theory of complex network, the epidemic model is applied to describe the contagion mechanism of associated credit risk on associated credit individuals in this paper. The stable state of associated credit risk contagion in the associated individual network has been analyzed with infectivity in hidden period and infective period of double propagation path. Furthermore, the influence of associated credit risk contagion factors on the stability in the general associated individual network environment has been discussed. The results show that the associated credit risk contagion threshold is related with network structure, and this threshold is contrary to hidden period and infective period, and keeps same change in the mutual conversion rate between hidden individuals and infected individuals, also keeps same change with the respective infection rates of hidden period and infective period. The density of hidden individuals keeps same change with the hidden period and the infection rate, which is contrary to the infective period. The density of infected individuals keeps same change with the infective period and the infection rate, which is contrary to the hidden period.This study enriches the research scope of credit risk and provides a new perspective for enterprises, banks and other credit individuals to control credit risk.

Key words: associated credit risk, contagion mechanism, double propagation path, epidemic model, associated individual network