Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘BBB-’ global scale Long-term Issuer Credit Rating with Stable Outlook to Xichang Haihe Cultural Tourism Investment Development Co., Ltd. (“XHCTID” or “the company”)
The Issuer Credit Rating reflects a high possibility that the People’s Government of Xichang City, Liangshan Yi Autonomous Prefecture (“Xichang government”) would provide strong support to XHCTID if needed, in light of its indirect full ownership of XHCTID, XHCTID’s strategic importance as the most important local investment and development company (“LIDC”) responsible for state-owned asset operation and construction in Xichang City, Liangshan Yi Autonomous Prefecture (“Xichang”) (“Liangshan”), and the linkage between the Xichang government and XHCTID, 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 Xichang government may face significant negative impact on its reputation and financing activities if XHCTID encounters any operational and financial difficulties.
The Stable Outlook reflects our expectation that XHCTID’s strategic importance would remain intact while the Xichang government will continue to ensure XHCTID’s stable operation.