Lianhe Global has assigned ‘BBB+’ global scale Long-term Issuer Credit Rating with Stable Outlook to Chengdu Chenghua Development Group Co., Ltd.
The Issuer Credit Rating reflects a high possibility that The People’s Government of Chenghua District (“Chenghua Government”) would provide strong support to Chengdu Chenghua Development Group Co., Ltd. (“CCD” or the company) if needed. This mainly considers Chenghua Government’s 90% ownership of CCD (with the other 10% owned by the Sichuan Provincial Department of Finance to subsidize the provincial Social Security Fund), CCD’s strategic position as the flagship LGFV consolidating major development and investment entities of Chenghua District in Chengdu City, as well as the strong linkage between Chenghua Government and CCD, including management supervision, strategic alignment, and ongoing operational and financial support. In addition, Chenghua Government may face significant negative impact on its reputation and financing activities should CCD encounter any operational or financial difficulties.
The Stable Outlook reflects our expectation that CCD’s strategic importance would remain intact while the Chengdu district government will continue to ensure CCD’s stable operation.