Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘BBB-’ global scale Long-term Issuer Credit Rating with Stable Outlook to Xiangyin Hengyuan New Energy Development Co., Ltd. (“XHNE” or “the company”)
The Issuer Credit Rating reflects a high possibility that the People’s Government of Xiangyin County (“the Xiangyin government”) would provide very strong support to XHNE if needed. This mainly considers the Xiangyin government’s ownership of XHNE, XHNE’s strategic importance as an important local investment and development company (“LIDC”) responsible for the construction and management of industrial parks and other infrastructure projects in Xiangyin County (“Xiangyin”), and the strong linkage between the Xiangyin government and XHNE, including the appointment of senior management, strategic alignment, supervision of major investment and financing decisions and ongoing operational and financial support. In addition, the Xiangyin government may face significant negative impact on its reputation and financing activities if XHNE encounters any operational and financial difficulties.
he Stable Outlook reflects our expectation that XHNE’s strategic importance would remain intact while the Xiangyin government will continue to ensure XHNE’s stable operation.