Fitch assigns Shangcheng Urban BBB

Fitch Ratings said it assigned Hangzhou Shangcheng District Urban Construction Investment Group Co. Ltd. (HSCI) long-term foreign- and local-currency issuer default ratings of BBB.

“The assessment reflects the strong linkages between Shangcheng District, in China's eastern province of Zhejiang, and HSCI, and the high incentive for the district to support the company,” Fitch said in a press release.

“HSCI has received consistent and strong support from Shangcheng district to maintain its credit profile, mainly via revenue for primary land and resettlement housing development, and construction commissions. The public sector made up an average of 93% of its operating revenue annually in the past four years. It has maintained its net profit margin at 34% on average,” the agency noted.

The outlook is stable.

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