Lianhe Ratings Global Limited (“Lianhe Global”) has affirmed ‘BBB’ global scale Long-term Issuer Credit Rating of Xingyang Urban Development Investment Group Co., Ltd. (“XUDI” or “the company”); Issuer Rating Outlook is Stable
The Issuer Credit Rating reflects a high possibility that the People’s Government of Xingyang (“the Xingyang government”) would provide very strong support to XUDI if needed. This mainly considers the indirect majority ownership of XUDI, XUDI’s strategic importance as the most important LIDC responsible for project development and city operation in Xingyang City (“Xingyang”). The linkage between the local government and XUDI is strong, including management supervision, strategic alignment and ongoing operational and financial support. In addition, if XUDI encounters any operational and financial difficulties, the local government could potentially face significant negative impact on its reputation and financing activities.
Xingyang is a county-level city under the jurisdiction of Zhengzhou, the capital city of Henan Province. Its GDP grew steadily by 5.8% to RMB76.3 billion in 2024.
The Stable Outlook reflects our expectation that XUDI’s strategic importance would remain intact while the local government will continue to ensure XUDI’s stable operation.