Lianhe Ratings Global Limited (“Lianhe Global”) has upgraded the global scale Long-term Issuer and Issuance Credit Rating of Heze City Investment Holdings Group Co., Ltd. (“HZCI” or “the company”) to ‘BBB+’ from ‘BBB’; Issuer Rating Outlook Stable
The Issuer Credit Rating upgrade reflects the strengthened importance of HZCI in Shandong’s Heze City (“Heze”), in view of its increasing contribution to Heze’s urban development and industrial upgrade. The company continues to be a major local investment and development company (“LIDC”) in Heze, playing an important role in local social and economic development.
We believe this presents a high possibility that the Heze Municipal People’s Government (“the Heze government”) would provide strong support to HZCI if needed, in light of its full ownership of HZCI and its strategic importance. The linkage between the Heze government and HZCI is strong, including management supervision, strategic alignment, and ongoing operational and financial support. In addition, the Heze government may face significant negative impact on its reputation and financing activities if HZCI encounters any operational and financial difficulties.
Heze is a prefecture-level city located southwest of Shandong Province. Heze’s GDP increased by 6.1% to RMB 480.3 billion in 2024, and the Heze government’s budgetary revenue increased by 4.0% to RMB32.9 billion.
The Stable Outlook reflects our expectation that HZCI’s strategic importance would remain intact while the Heze government will continue to ensure HZCI’s stable operation.
Lianhe Global has also upgraded the global scale Long-term Issuance Credit Rating of the senior unsecured bonds issued by HZCI at the same time to ‘BBB+’ from ‘BBB’. A full list of upgraded issuance rating is included in this report.