S&P rates GHAT notes BBB-

S&P said it assigned a BBB- long-term corporate credit rating to Gansu Provincial Highway Aviation Tourism Investment Group Co. Ltd. (GHAT).

The agency also said it assigned a cnA- long-term Greater China regional scale rating to the company.

S&P also said it assigned a BBB- rating and cnA- long-term Greater China regional scale rating to the proposed issue of senior unsecured notes.

The outlook is stable.

GHAT is China's Gansu provincial government's primary financing, construction and operational entity for highway development in the province, the agency said.

The company is mandated to support the general aviation and tourism industries in Gansu, S&P said, and engage in a range of diversified business, including regional railway development, financial services and commodity trading business.

The ratings are underpinned by the creditworthiness of the company's sole owner, the Gansu provincial government, the agency said.

The ratings also reflect a view of the almost-certain likelihood of timely and sufficient extraordinary support to the company from the provincial government if needed, S&P added.

The ratings also consider the province’s exceptional liquidity, satisfactory financial management and average budgetary flexibility, the agency noted.

These strengths are tempered by the provincial government's very high debt burden and contingent liabilities, weak budgetary performance and weak economy, S&P said.

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