Lianhe Ratings Global Limited (“Lianhe Global”) has upgraded the global scale Long-term Issuer Rating of Nanyang Investment Group Co., Ltd. (“NYIC” or “the company”) to ‘A-’ from ‘BBB+’; Issuer Rating Outlook Stable
The Issuer Credit Rating upgrade reflects the strengthened strategic importance of NYIC in Henan’s Nanyang City (“Nanyang”), in view of its increasing contribution to Nanyang’s industrial development (e.g. cultural tourism and healthcare) and public utility operations (e.g. gas supply and sewage treatment). The company continues to be the core local investment and development company (“LIDC”) in Nanyang, playing an essential role in promoting social and economic development.
We believe this presents a high possibility that Nanyang Municipal People’s Government (“the Nanyang government”) would provide very strong support to NYIC if needed, in light of its indirectly full ownership of NYIC and NYIC’s strategic importance in Nanyang City. The linkage between the Nanyang government and NYIC is strong, including management supervision, strategic alignment and ongoing operational and financial support. In addition, the Nanyang government may face significant negative impact on its reputation and financing activities if NYIC encounters any operational and financial difficulties.
Nanyang is a sub-provincial center city in Henan Province. Nanyang’s GDP reached RMB487.9 billion in 2024, representing a year-over-year growth rate of 5.5%. Yet its budgetary revenue dropped significantly to RMB22.2 billion in 2024 from RMB28.9 billion in 2023.
The Stable Outlook reflects our expectation that NYIC’s strategic importance would remain intact while the Nanyang government will continue to ensure NYIC’s stable operation.