On 29 January, Fitch awarded the award to Science City (Guangzhou) Investment Group Co, ltd., "Science City Investment Group") intends to issue a "BBB" rating of senior unsecured green bonds denominated in US dollars.
Rating justification. The proposed bonds will constitute direct, unconditional, unsubordinated and unsecured obligations of Science City Investment Group and will rank pari passu with the Company's other current and future unsecured and unsubordinated debts. As such, the bond is rated at the same level as Science City Investment Group's Long-Term Foreign Currency Issuer Default Rating (IDR).
Key rating drivers.
Risk Profile:
Fitch's assessment of Science City Investment Group's IDR reflects its relevance to the relevant corporate rating criteria and its expectation of support. The rating methodology takes into account the direct ownership and control of **, as well as the company's important policy role in the urban development of the Guangzhou Development Zone. As a result, Fitch believes that it will provide special support to the group if necessary.
Summary of Rating Derivation.
Fitch derives the company's IDR based on the four factors in its Rating Criteria for Relevant Companies, as well as its independent credit profile based on its Rating Criteria for Revenue-Supported Companies in the Public Services category.
Issuer Profile.
Founded in 1984, Science City Investment Group is one of the oldest related enterprises in the Guangzhou Development Zone, and one of the main related enterprises in the Guangzhou Development Zone. It acts as an urban developer and industrial park operator, supporting the development of businesses in the area. Its main businesses include urban renewal, infrastructure construction projects, commodities**, sewage treatment services, property leasing and other ancillary businesses.
Rating sensitivity.
Factors that could individually or collectively lead to negative rating action on Fitch Factors that could downgrade include:
A negative rating action on Science City Investment Group's IDR would result in a similar change in the rating of the proposed bonds.
Factors that could individually or collectively lead to positive rating action by Fitch include:
A positive rating action on Science City Investment Group's IDR would result in a similar change in the rating of the proposed bonds.