Lianhe Ratings Global Limited (“Lianhe Global”) has affirmed ‘BBB-’ global scale Long-term Issuer Credit Rating of Chongqing Tongnan District Construction Engineering (Group) Co., Ltd. (“CTDCE” or “the company”); Issuer Rating Outlook is Stable
The Issuer Credit Rating reflects a high possibility that the People’s Tongnan District Government of Chongqing City (“the Tongnan government”) would provide strong support to CTDCE if needed. This mainly considers its indirect full ownership of CTDCE, CTDCE’s strategic importance as a key local investment and development company in Tongnan District (“Tongnan”). The linkage between the Tongnan government and CTDCE is strong, including management supervision, strategic alignment, and ongoing operational and financial support. In addition, the Tongnan government may face significant negative impact on its reputation and financing activities if CTDCE encounters any operational or financial difficulties.
Tongnan is a district under the jurisdiction of Chongqing City. The Tongnan government’s budgetary revenue increased strongly by 14.0% to RMB4.0 billion in 2024, while its GDP grew steadily by 5.7% to RMB63.0 billion in 2024.
The Stable Outlook reflects our expectation that CTDCE’s strategic importance would remain intact, while the Tongnan government will continue to ensure CTDCE’s stable operation.