Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘BBB+’ global scale Long-term Issuer Credit Rating with Stable Outlook to Chengdu Vartaim Cultural Tourism Development Co., Ltd. (“Vartaim” or “the company”)
The Issuer Credit Rating reflects a high possibility that Chengdu Chenghua District People’s Government (“the Chenghua government”) would provide strong support to Vartaim if needed. This mainly considers the Chenghua government’s indirect majority ownership of Vartaim, Vartaim’s strategic position as an important local investment and development company (“LIDC”) responsible for urban renewal, as well as development and operation of cultural tourism in Chengdu’s Chenghua District (“Chenghua”). The linkage between the Chenghua government and Vartaim is strong, including management supervision, strategic alignment, and ongoing operational and financial support. In addition, the Chenghua government may face significant negative impact on its reputation and financing activities should Vartaim encounter any operational or financial difficulties.
Chenghua is a municipal district of Chengdu, the capital city of Sichuan Province. In 2024, Chenghua’s GDP grew steadily by 5.7% to RMB150.5 billion, yet its budgetary revenue dropped by 28.2% to RMB6.3 billion.
The Stable Outlook reflects our expectation that Vartaim’s strategic importance would remain intact while the Chenghua government will continue to ensure Vartaim’s stable operation.