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