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Hong Kong, 28 July 2022, China Chengxin (Asia Pacific) Credit Ratings Company Limited (“CCXAP”) has published its updated methodology for China’s Local Infrastructure Investment and Financing Companies (“LIIFCs”), replacing the version published in May 2020. This rating methodology applies to China’s LIIFCs.

Under this rating methodology, the rating framework in the assessment of China’s LIIFCs has revised to a top-down approach and removed the baseline credit assessment on LIIFCs combined with extraordinary support from RLGs. The credit rating of a LIIFC will be mainly determined by (1) RLG’s capacity to support, and (2) LIIFC’s characteristics affecting RLG’s willingness to support.

The adoption of this methodology is expected to cause rating changes on some of our rated entities, which will be announced on a timely basis. For any credit ratings to particular entities, please see the Rating Result page on www.ccxap.com for the most updated credit rating action information and rating history.

RATING METHODOLOGY FOR LIIFCS: [LINK]