Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘BBB-’ global scale Long-term Issuer Credit Rating with Stable Outlook to Xinyi High-tech Construction Development Group Co., Ltd. (“XHCD” or “the company”)
The Issuer Credit Rating reflects a high possibility that the Xinyi People’s Government (“the Xinyi government”) would provide strong support to XHCD if needed, in light of its full ownership of XHCD, XHCD’s strategic importance as an important local investment and development company (“LIDC”) responsible for land development, infrastructure construction and urban village renovation, as well as industrial parks development and operation in Xiyi High-tech Industrial Development Zone (“High-tech Zone”), and the linkage between the Xinyi government and XHCD, including the appointment of the senior management, strategic alignment, supervision of major financing plan and investment decisions and ongoing operational and financial support. In addition, the Xinyi government may face significant negative impact on its reputation and financing activities if XHCD encounters any operational and financial difficulties.
The Stable Outlook reflects our expectation that XHCD’s strategic importance would remain intact while the Xinyi government will continue to ensure XHCD’s stable operation.