Lianhe Ratings Global Limited (“Lianhe Global”) has affirmed ‘A-’ global scale Long-term Issuer Credit Rating of Xuchang Investment Group Co., Ltd. (“XIG” or “the company”); Issuer Rating Outlook is Stable
The Issuer Credit Rating reflects a high possibility that the People’s Government of Xuchang City (“Xuchang government”) would provide very strong support to XIG if needed, in light of its full ownership of XIG, XIG’s strategic importance as the most important local investment and development company (“LIDC”) that is responsible for infrastructure construction, industrial development and state-owned capital and asset operation in Xuchang, and the linkage between the Xuchang government and XIG, including appointment of the senior management, strategic alignment, supervision of major investment and financing plan decisions and ongoing operational and financial support. In addition, the Xuchang government may face significant negative impact on its reputation and financing activities if XIG encounters any operational and financial difficulties.
Xuchang is a prefecture-level city of Henan Province (“Henan”) and is located in the center of Henan, bordering Zhengzhou on the north. Xuchang’s GDP increased steadily by 6.0% to RMB344.1 billion in 2024.
The Stable Outlook reflects our expectation that XIG’s strategic importance would remain intact while the Xuchang government will continue to ensure XIG’s stable operation.