China Hongqiao Group Limited (Surveillance Report)

The Issuer Rating upgrade to ‘BB+’ reflects China Hongqiao Group Limited‘s (1378.HK) (“China Hongqiao” or “the company”) demonstrated effort in financial deleveraging, leading market position, economy of scale and vertically integrated production platform providing cost advantage, and improving operating performance. However, China Hongqiao’s rating is constrained by its relatively flat growth, regulatory risks, and cyclical industry nature.

Lianhe Global has also upgraded the global scale Long-term Issuance Credit Rating to the senior unsecured USD notes issued by China Hongqiao to ‘BB+’ from ‘BB’ at the same time. A full list of issuance ratings is included in this report.