Lianhe Ratings Global Limited (“Lianhe Global”) has affirmed ‘BBB-’ global scale Long-term Issuer Credit Rating of Luoyang Guoyuan Investment Holding Group Co., Ltd. (“LGIH” or “the company”); Issuer Rating Outlook is Stable
The Issuer Credit Rating reflects a high possibility that Luoyang Municipal People’s Government (“Luoyang government”) would provide moderately strong support to LGIH if needed, in light of its majority 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 Luoyang 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 Luoyang government may face significant negative impact on its reputation and financing activities if LGIH encounters any operational and financial difficulties.
Luoyang is a prefecture-level city in the western part of Henan Province. Luoyang’s GDP amount increased by 4.9% to RMB581.9 billion in 2024, while the Luoyang government’s budgetary revenue increased slightly by 0.7% to RMB40.7 billion.
The Stable Outlook reflects our expectation that LGIH’s strategic importance would remain intact while the Luoyang government will continue to ensure LGIH’s stable operation.