Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘A-’ global scale Long-term Issuer Credit Rating with Stable Outlook to Hengyang City Construction Investment Development Group Co., Ltd. (“HCIDG” or “the company”)
The Issuer Credit Rating reflects a high possibility that the People’s Government of Hengyang City (“Hengyang government”) would provide very strong support to HCIDG if needed, in light of its full ownership of HCIDG, HCIDG’s strategic importance as the most important local investment and development company (“LIDC”) responsible for infrastructure construction in Hengyang, and the linkage between the local government and HCIDG, including appointment of the senior management, strategic alignment, supervision of major investment and financing plan decisions and ongoing operational and financial support. In addition, the Hengyang government may face significant negative impact on its reputation and financing activities if HCIDG encounters any operational and financial difficulties.
The Stable Outlook reflects our expectation that HCIDG’s strategic importance would remain intact while the Hengyang government will continue to ensure HCIDG’s stable operation.