Changsha Tianxin State Property Group Co., Ltd. (Initial Issuer Report)

Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘BBB’ global scale Long-term Issuer Credit Rating with Stable Outlook to Changsha Tianxin State Property Group Co., Ltd. (“CTSPG” or “the company”)

The Issuer Credit Rating reflects a high possibility that the People’s Government of Tianxin District of Changsha City (“Tianxin government”) would provide strong support to CTSPG if needed, in light of its indirect full ownership of CTSPG, CTSPG’s strategic importance as an important local investment and development company (“LIDC”) responsible for land consolidation and state-owned assets operation in Tianxin District (“Tianxin”) of Changsha City (“Changsha”), and the linkage between the Tianxin government and CTSPG, including appointment and supervision of the senior management, strategic alignment, major investment and financing plan decisions and ongoing government support, etc. In addition, the Tianxin government may face significant negative impact on its reputation and financing activities if CTSPG encounters any operational and financial difficulties.

The Stable Outlook reflects our expectation that CTSPG’s strategic importance would remain intact while the Tianxin government will continue to ensure CTSPG’s stable operation.