Lianhe Ratings Global Limited (“Lianhe Global”) has upgraded the global scale Long-term Issuer Credit Rating of Hunan Ruixin Industrial Operation Management Co., Ltd. (“HRIOM” or “the company”) to ‘BBB’ from ‘BBB-’; Issuer Rating Outlook is Stable.
The Issuer Credit Rating upgrade reflects an upgrade in our internal credit assessment on the People’s Government of Yuanjiang government (“Yuanjiang government”). We believe this continues to reflects a high possibility that the Yuanjiang government would provide very strong support to HRIOM if needed, in light of its full ownership of HRIOM, HRIOM’s strategic importance as an important LIDC that is responsible for state-owned assets operation and investment in Yuanjiang, and the linkage between the Yuanjiang government and HRIOM, including appointment and supervision of the senior management, strategic alignment, major investment and financing plan decisions and ongoing operational and financial support. In addition, the Yuanjiang government may face significant negative impact on its reputation and financing activities if HRIOM encounters any operational and financial difficulties.
The Stable Outlook reflects our expectation that HRIOM’s strategic importance would remain intact while the Yuanjiang government will continue to ensure HRIOM’s stable operation.