Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘BBB-’ global scale Long-term Issuer Credit Rating with Stable Outlook to Shaanxi Xixian New Area Fengxi Development Group Co., Ltd. (“SXFD” or “the company”)
The Issuer Credit Rating reflects a high possibility that the de facto local government of Fengxi New City of Xixian New Area of Shaanxi Province (“Fengxi”), the Management Committee of Fengxi (“Fengxi MC”), would provide strong support to SXFD if needed, in light of its direct majority ownership of SXFD, SXFD’s strategic importance as the important state-owned entity for infrastructure development, shantytown renovation, land development, as well as resettlement house construction in Fengxi, and the linkage between the Fengxi MC and SXFD, including control and supervision over the management, strategic alignment and ongoing operational and financial support. In addition, the Fengxi MC may face significant negative impact on its reputation, business and financing activities if SXFD encounters any operational and financial difficulties.
The Stable Outlook reflects our expectation that SXFD’s strategic importance would remain intact while the Fengxi MC will continue to ensure SXFD’s stable operation.