Lianhe Ratings Global Limited (“Lianhe Global”) has affirmed ‘A-’ global scale Long-term Issuer Credit Rating of Hengyang City Construction Investment Development Group Co., Ltd. (“HCIDG” or “the company”); Issuer Rating Outlook is Stable
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 through the Hengyang State-owned Asset Supervision and Administration Committee of Hengyang (“Hengyang SASAC”), HCIDG’s strategic importance as the most important local investment and development company (“LIDC”) that is responsible for infrastructure construction in Hengyang, and the linkage between the Hengyang 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.
Hengyang is a prefecture-level city under the jurisdiction of Hunan. Its GDP grew steadily by 5.4% to RMB449.2 billion in 2024.
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.