Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘BBB-’ global scale Long-term Issuer Credit Rating with Stable Outlook to Luoyang Guoyuan Investment Holding Group Co., Ltd. (“LGIH” or “the company”)
The Issuer Credit Rating reflects a high possibility that the People’s Government of Jianxi District, Luoyang City (“Jianxi government”) would provide strong support to LGIH if needed, in light of its indirect full ownership of LGIH, LGIH’s strategic importance as the sole local investment and development company (“LIDC”) that is responsible for infrastructure construction and state-owned asset operation in Jianxi District, Luoyang City (“Jianxi”), and the linkage between the Jianxi government and LGIH, 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 Jianxi government may face significant negative impact on its reputation and financing activities if LGIH encounters any operational and financial difficulties.
The Stable Outlook reflects our expectation that LGIH’s strategic importance would remain intact while the Jianxi government will continue to ensure LGIH’s stable operation.