Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘A+ global scale Long-term Issuer Credit Rating to Chongqing Xingnong Financing and Guarantee Group Co., Ltd. (“CXFG”); Outlook is Stable.
The Issuer Rating reflects CXFG’s leading market position as the key financial guarantee company in Chongqing City (“Chongqing”), as well as its strong capital base and moderate leverage. The rating also considers its concentrated business profile, moderately diversified revenue resources, stable profitability and low debt burden. Besides, we expect that CXFG would receive very strong financial and policy support from the People’s Government of Chongqing Province (“Chongqing government”) if needed, in light of its strategic importance in maintaining economic and financial system stability in Chongqing and the government’s full ownership. In addition, the Chongqing government may face significant negative impact on its reputation and financing activities if CXFG encounters any operational and financial difficulties.
The Stable Outlook reflects our expectation that CXFG will maintain its market position and strategic importance in Chongqing’s financial system, and its adequate funding and liquidity position which is commensurate with its credit profile.