Chengdu Airport Xingcheng Investment Group Co., Ltd. (Initial Issuer Report)

Lianhe Global has assigned ‘BBB’ global scale Long-term Issuer Credit Rating with Positive Outlook to Chengdu Airport Xingcheng Investment Group Co., Ltd. (“CAXIG”).

The Issuer Credit Rating reflects a high possibility that the Shuangliu District People’s Government of Chengdu (“Shuangliu government”) would provide strong support to CAXIG if needed, in light of its 100% ownership of CAXIG, CAXIG’s strategic position as the major development and operation entity of Shuangliu District in Chengdu City and the strong linkage between the Shuangliu government and CAXIG including management supervision, strategic alignment, and ongoing operational and financial support. In addition, the Shuangliu government may face significant negative impact on its reputation and business and financing activities should CAXIG encounter any operational or financial difficulties.

The Positive Outlook reflects our expectation that CAXIG’s strategic importance would be strengthened given its strategic development role, while the Shuangliu government will continue to ensure CAXIG’s stable operation.