Changshan County City Investment Group Co., Ltd. (Surveillance Report)

Lianhe Ratings Global Limited (“Lianhe Global”) has upgraded the global scale Long-term Issuer Credit Rating of Changshan County City Investment Group Co., Ltd. (“CCCI” or “the company”) to ‘BBB’ from ‘BBB-’. The Outlook is Stable.

The Issuer Rating upgrade reflects the increased strategic importance of CCCI in Changshan County, Quzhou City (“Changshan”), as demonstrated in its newly assigned role in talent acquisition and innovation, and construction of resettlement housing, apartment and other related public facilities in the talent community, and strengthened role as the sole entity responsible for infrastructure investment and construction in the region with the development of key initiatives in Changshan, and increasing support from the People’s Government of Changshan County (“Changshan government”).

We believe there is a high possibility that Changshan government would provide very strong support to CCCI if needed, in light of its full ownership of CCCI, CCCI’s strategic position as the sole entity that is responsible for infrastructure construction, land development and resettlement housing construction in Changshan, and the strong linkage between the Changshan government and CCCI, including control and supervision over CCCI’s management, strategic alignment and ongoing operational and financial support. In addition, the Changshan government may face significant negative impact on its reputation, business, and financing activities should CCCI encounter any operational or financial difficulties.

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