Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘BBB-’ global scale Long-term Issuer Credit Rating with Stable Outlook to Xi’an Chanba Development Group Co., Ltd. (“XCDG” or “the company”)
The Issuer Credit Rating reflects a high possibility that the de facto local government of Xi’an Chanba Ecological District (“CBE”), Xi’an Chanba Ecological Area Management Committee (“CBE MC”), would provide strong support to XCDG if needed. This mainly considers CBE MC’s majority ownership of XCDG, XCDG’s strategic importance as an important local investment and development company (“LIDC”) responsible for infrastructure and affordable housing development in CBE, and the linkage between the local government and XCDG, 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 local government may face significant negative impact on its reputation and financing activities if XCDG encounters any operational and financial difficulties.
The Stable Outlook reflects our expectation that XCDG’s strategic importance would remain intact while the local government will continue to ensure XCDG’s stable operation.