Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘BBB+’ global scale Long-term Issuer Credit Rating with Stable Outlook to Haikou City Coordinates Urban and Rural Development (Group) Co., Ltd. (“HCCURD” or “the company”)
The Issuer Credit Rating reflects a high possibility that the Haikou Municipal Government (“Haikou government”) would provide strong support to HCCURD if needed. This mainly considers the Haikou government’s majority ownership of HCCURD, HCCURD’s strategic importance as a major local investment and development company (“LIDC”) responsible for rural and urban revitalization and infrastructure construction and investment in Haikou City (“Haikou”). In addition, the linkage between the Haikou government and HCCURD is strong, including management supervision, strategic alignment and ongoing operational and financial support. Moreover, the Haikou government may face significant negative impact on its reputation and financing activities if HCCURD encounters any operational and financial difficulties.
Haikou is the capital city of Hainan Province. In 2024, Haikou’s GDP grew by 4.0% to RMB247.1 billion.
The Stable Outlook reflects our expectation that HCCURD’s strategic importance would remain intact while the Haikou government will continue to ensure HCCURD’s stable operation.