Ningguo State-owned Capital Holding Group Co., Ltd. (Initial Issuer Report)

Lianhe Ratings Global Limited (“Lianhe Global”) publishes ‘BBB-’ global scale Long-term Issuer Credit Rating with Stable Outlook to Ningguo State-owned Capital Holding Group Co., Ltd. (“NSCHG” or “the company”)

The Issuer Credit Rating reflects a high possibility that the People’s Government of Ningguo City, Xuancheng City (“Ningguo government”) would provide strong support to NSCHG if needed, in light of its indirect full ownership of NSCHG, NSCHG’s strategic importance as the key local investment and development company (“LIDC”) that is responsible for infrastructure construction and  resettlement housing construction in Ningguo City, Xuancheng City (“Ningguo”), and the linkage between the Ningguo government and NSCHG, 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 Ningguo government may face significant negative impact on its reputation and financing activities if NSCHG encounters any operational and financial difficulties.

The Stable Outlook reflects our expectation that NSCHG’s strategic importance would remain intact while the Ningguo government will continue to ensure NSCHG’s stable operation.