Lianhe Ratings Global Limited (“Lianhe Global”) has upgraded the global scale Long-term Issuer and Issuance Credit Rating of XMXYG Corporation (“XMXYG” or “the company”) to ‘A-’ from ‘BBB+’; Issuer Rating Outlook Positive
The Issuer Credit Rating upgrade reflects XMXYG’s enhanced strategic position in Xiamen City, Fujian Province (“Xiamen”), following its designation as both a regional grain reserve operator and national grain reserve pilot unit, supported by the recent consolidation of relevant assets from the Xiamen government. Besides, XMXYG maintains its leading market position in comprehensive supply chain management industry, supported by its established nationwide logistics network and the strengthening of its comprehensive service capability. Moreover, XMXYG has proven track record of strong external support from Xiamen government. However, the rating is constrained by XMXYG’s relatively high financial leverage and low profit margin.
The Positive Outlook reflects our expectation that XMXYG will continue to strengthen its market leadership in supply chain management while enhancing profitability through strategic initiatives. The company’s nationwide and overseas logistics network, coupled with its growing importance in port infrastructure development, provides a solid foundation for sustainable growth. XMXYG’s earnings potential is further supported by the integration of high-value aluminum assets and cost optimization measures, which should improve margins despite ongoing commodity market volatility.
Lianhe Global has also upgraded the global scale Long-term Issuance Credit Rating of the senior unsecured bonds issued by XMXYG at the same time to ‘A-’ from ‘BBB+’. A full list of upgraded issuance rating is included in this report.