Lianhe Ratings Global Limited (“Lianhe Global”) has upgraded the global scale Long-term Issuer Credit Rating of Taixing Runjia Holdings Ltd. (“TRH” or “the company”) to ‘BBB’ from ‘BBB-’; Issuer Rating Outlook Revised to Stable
The Issuer Credit Rating upgrade reflects the company’s increasing strategic importance in Taixing, especially in the Taixing Economic Development Zone (‘Taixing EDZ”), given its deepening role in the involvement in land development and industrial development under the guidance of the People’s Government of Taixing City (“Taixing government”), as well as continuous support received from the Taixing government.
We believe this continues to reflect a high possibility that the Taixing government would provide strong support to TRH if needed, in light of Taixing government’s indirect majority ownership of TRH, TRH’s strategic importance as an important local investment and development company (“LIDC”) that is responsible for infrastructure construction, area development and state-owned asset operation and management in Taixing, especially in Taixing EDZ, and the linkage between the Taixing government and TRH, 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 Taixing government may face significant negative impact on its reputation and financing activities if TRH encounters any operational and financial difficulties.
Taixing is a county-level city in Jiangsu that is managed by Taizhou City. It is one of the top 100 counties in China, with a GDP of RMB143.5 billion in 2023. Taixing’s GDP grew by 5.5% in 2024 and realized budgetary revenue of RMB10,010 million in 2024, representing a year-over-year growth rate of 3.0%.
The Stable Outlook reflects our expectation that TRH’s strategic importance would remain intact while the Taixing government will continue to ensure TRH’s stable operation.