Lianhe Ratings Global Limited (“Lianhe Global”) has upgraded the global scale Long-term Issuer and Issuance Credit Rating of Xiao County Construction Investment Group Co., Ltd. (“XCCIG” or “the company”) to ‘BBB’ from ‘BBB-’; Issuer Rating Outlook Stable
The Issuer Credit Rating upgrade reflects an upgrade in our internal credit assessment on the People’s Government of Xiao County (“Xiao County government”). We believe there is a high possibility that the Xiao County government would provide very strong support to XCCIG if needed, in light of its direct full ownership of XCCIG, XCCIG’s strategic importance as the key local investment and development company (“LIDC”) that is responsible for comprehensive urban operation, project construction, area development and state-owned asset management in Xiao County, and the linkage between the Xiao County government and XCCIG, 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 Xiao County government may face significant negative impact on its reputation and financing activities if XCCIG encounters any operational and financial difficulties.
Xiao County is a county of Suzhou City, Anhui Province and is located in the northwest of Suzhou City. Xiao County’s GDP reached RMB48.8 billion in 2024, with the growth rate accelerating to 6.0% year-on-year in 2024. The budgetary revenue of Xiao County reached RMB1.9 billion in 2024.
The Stable Outlook reflects our expectation that XCCIG’s strategic importance would remain intact while the Xiao County government will continue to ensure XCCIG’s stable operation.
Lianhe Global has also upgraded the global scale Long-term Issuance Credit Rating of the senior unsecured bonds issued by XCCIG to ‘BBB’ from ‘BBB-’ at the same time. A full list of issuance rating is included in this press release.