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Rating Action: China State Construction SilkRoad Construction Investment Group Co. Ltd. “Aspc” Rating Affirmed, With Stable Outlook

义乌中国小商品城控股集团有限公司名称变更不影响其信用质量

福建省三明高速公路有限公司取消监事会、 监事不影响其信用质量

浙江中国小商品城集团股份有限公司董事长辞职不影响其信用质量

中建方程投资发展集团有限公司取消监事不影响其信用质量


Rating Action: China State Construction SilkRoad Construction Investment Group Co. Ltd. “Aspc” Rating Affirmed, With Stable Outlook

BEIJING, September 28,2021, S&P Global (China) Ratings has affirmed its ‘Aspc’ issuer credit rating on China State Construction SilkRoad Construction Investment Group Co. Ltd. (“CSCEC SilkRoad”), the outlook is stable.

CSCEC SilkRoad is a wholly owned subsidiary of China State Construction Engineering Corporation Ltd(“CSCEC"), the company facilitates the development of CSCEC’s infrastructure construction business through investing in various infrastructure projects.

In our view, the issuer credit rating of ‘Aspc’ reflects CSCEC SilkRoad’s strict project investment policy and approval process, relative high quality of projects, and good regional exposure. The company, as a wholly owned subsidiary, plays an important role in carrying out and developing CSCEC's infrastructure business strategy, and acts as CSCEC's main executor of infrastructure development in northwest China. We expect it to continue in these roles in the future and as such we view this company as being of high importance to CSCEC. Tempering these strengths are the company’s ongoing capital investment from many projects under construction, leading to its financial leverage maintaining a relatively high level. In our view, there is some uncertainty on how they operate these assets and some geographic concentration risks as currently all PPP projects are in a single area.

In our view, the company has developed a sound investment approval policy and process and has maintained good discipline over its investments. All investment projects need to be submitted to CSCEC for approval, and CSCEC has the final say on investment decisions. This investment discipline ensures the project’s quality. All the company’s PPP projects are included in the Ministry of Finance’s PPP Management Database and China Public Private Partnerships Center (CPPPC), and government-pay and viability gap funding (VGF) are included in the local government's fiscal budget. By the end of June 2021, the company had 7 PPP projects underway, representing total investment of about RMB 40 billion. The company also invested in two PPP projects with minority shareholding.

For the projects in which the company has invested, we view their return mechanisms as good, with low market risk exposure. Among the company’s seven PPP projects, one has a government-pay mechanism, and the six other projects operate through VGF mechanisms. In our view, the regional exposure for the company’s projects is good, as shown by the region’s good economic and fiscal condition.

In line with the industry, most of the company’s projects are under construction, and a few have entered trial operation. Some uncertainty remains over the effect of future operations, as well as receipt of corresponding repayments. At the same time, having all projects based in one city leads to some geographic concentration risk.

We view the company’s financial risk profile as significant. With all projects under construction, we expect the company's leverage ratio to remain at a high level as construction progresses. However, its EBITDA and total project repayment could provide good interest coverage. Thanks to its relatively good financing structure, we expect project repayment to cover both interest and principal payment when major projects enter operation. PPP project financing offers some flexibility, which may mitigate some pressure from the risk of untimely collection of project repayment.

We view that CSCEC SilkRoad is of high importance to CSCEC. The company plays an important role in carrying out and developing CSCEC's infrastructure business strategy, and acts as CSCEC's main executor of infrastructure development in northwest China. We expect the company to continue in these roles in the future. In our view, CSCEC’s strict management of the company's investment operations and finances will continue for the foreseeable future, strengthening their linkage and allowing CSCEC to be in a position where it can provide timely extraordinary support when needed.

The stable outlook on CSCEC SilkRoad reflects our view that the company would successfully complete its current PPP projects and enter operation over the next 24 months. We also expect the company to continue to hold its strict investment approval process and investment standards for new investment projects. The company’s debt level is expected to grow as its ongoing investment projects progress. However, as the projects gradually enter operation and gradually deliver returns, the leverage ratio and interest coverage ratio would remain relatively stable. As a wholly owned subsidiary of CSCEC, CSCEC SilkRoad’s strategic role of developing the infrastructure investment in northwest China market would remain unchanged, and would continue to receive support from its parent CSCEC.

 

We might consider upgrading the rating of CSCEC SilkRoad if:

1) The company's business risk profile improves while maintaining its current financial risk profile. Improvements to its business risk profile may be precipitated by: i) the company developing a track record in project repayments after they enter operation, reducing the uncertainty in project repayments; or ii) new investment projects expanding to multiple cities, reducing its geographic concentration risk. Or

2) As the project continues to collect repayments, the company gradually uses these proceeds to pay back its PPP project loans, reducing the company's financial risk on a sustainable basis. Or

3) The importance of the company within the CSCEC group increases.

 

We might consider lowering the rating of the company if:

1) The company's business risk profile deteriorates. This scenario could occur if i) there is a significant relaxation of the company and CSCEC’s requirements for management and investment of projects; or ii) the company’s future projects have weaker regional exposure, or  iii) there is poor operation of completed projects, seriously affecting project payback. Or

2) Group support is weakened. This scenario could occur if the company's importance to CSCEC is lowered, or CSCEC’s indicative credit quality deteriorates significantly on a prolonged period, resulting in declining indicative support ability.  Or

3) The company’s authority over the financial management of its projects changes significantly.

In our view, the last two scenarios are unlikely to occur in the foreseeable future.

 

Related Methodologies:

―   S&P Global (China) Ratings-Corporate Methodology, 28 July 2020

―   S&P Global (China) Ratings Supplemental Methodology—Transportation infrastructure Industry, 21 May 2019

―   S&P Global (China) Ratings General Considerations on Rating Modifiers and Relative Ranking, 21 May 2019

 

Related Research:

―   Understanding S&P Global (China) Rating Corporate Methodology,28 July 2020

―   Commentary: Understanding S&P Global (China) Ratings General Considerations On Rating Modifiers and Relative Ranking Methodology,29 June 2020

―   Commentary: Understanding S&P Global (China) Ratings Approach To Support,8 May 2019

 

Media Contacts:

Sharon.Tang,Beijing;(86)10-6569-2988;sharon.tang@spgchinaratings.cn

  

Analyst Contacts:

Renyuan.Zhang,Beijing;renyuan.zhang@spgchinaratings.cn



义乌中国小商品城控股集团有限公司名称变更不影响其信用质量

2025年6月30日,义乌中国小商品城控股集团有限公司(以下简称“商城控股”或“公司”)发布《义乌中国小商品城控股集团有限公司关于公司名称变更的公告》(以下简称“公告”)。根据公告,公司的名称由“义乌中国小商品城控股有限责任公司”变更为“义乌中国小商品城控股集团有限公司”,完成工商变更登记的时间为2025年6月27日。本次公司名称变更不改变原签署的与债券相关的法律文件效力,公司更名前的债权债务关系均由更名后的公司继承。
标普信用评级(中国)有限公司(以下简称“标普信评”)认为,上述公司名称变更不影响商城控股的信用质量。商城控股凭借现有市场的稳定经营及新建市场的增量贡献,行业竞争地位将进一步夯实。公司的房地产开发业务将保持相对审慎的经营风格,聚焦存量项目去化,控制新增投资。义乌全球数字自贸中心投入运营将带动商位使用费及选位费增长,公司的利润和现金流将不断改善,财务风险维持较低。标普信评认为,义乌市政府对商城控股的外部支持为“极高”,义乌市政府的支持能力极强。公司在义乌市的职能定位很重要,其所运营的义乌小商品城是义乌市实施“兴商建市”经济战略的核心载体,能够持续获得义乌市政府在政策倾斜、业务资源及资金注入方面的大力支持。

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福建省三明高速公路有限公司取消监事会、 监事不影响其信用质量

2025年7月1日,福建省三明高速公路有限公司(以下简称“三明高速”或“公司”)发布《福建省三明高速公路有限公司关于取消监事会、监事的公告》称,根据《公司法》、公司章程规定以及公司相关决策程序,公司不再设立监事会和监事,董歆昕不再担任公司监事。
标普信用评级(中国)有限公司(以下简称“标普信评”)认为,此次取消监事会及监事为三明高速依据《公司法》进行的正常组织管理架构简化,不影响公司的主体信用质量。三明高速的业务状况和财务风险未发生变化,公司将持续在三明市的高速公路运营领域发挥重要作用,福建省高速公路集团有限公司对其外部支持维持“高”。

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浙江中国小商品城集团股份有限公司董事长辞职不影响其信用质量

2025年6月27日,浙江中国小商品城集团股份有限公司(以下简称“商城股份”)发布《浙江中国小商品城集团股份有限公司关于董事长辞职的公告》称,原董事长王栋先生因组织上工作安排的原因提交书面辞职报告,辞任董事长、董事、董事会战略与ESG委员会主任委员职务,辞职后王栋先生将不担任商城股份任何职务。王栋先生辞职不会导致商城股份董事会成员低于法定最低人数,不会影响董事会依法规范运作,也不会影响商城股份正常的经营发展。鉴于新任董事长的选举工作尚需经过相应的法定程序,目前商城股份存在董事长职位空缺情况,商城股份将按照法定程序尽快完成董事长补选等相关工作。
标普信用评级(中国)有限公司(以下简称“标普信评”)认为,上述人事变动属于国企正常人事调整,不影响商城股份的信用质量。商城股份仍作为义乌市维护和促进城市整体市场繁荣的重要主体,义乌中国小商品城控股集团有限公司(公司原名义乌中国小商品城控股有限责任公司)对商城股份的外部支持维持“极高”。标普信评将对商城股份董事长补选等相关工作保持持续关注。

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中建方程投资发展集团有限公司取消监事不影响其信用质量

2025年6月25日,中建方程投资发展集团有限公司(以下简称“中建方程”)发布《中建方程投资发展集团有限公司关于取消监事的公告》称,为深入贯彻党中央、国务院的决策部署及中国建筑集团有限公司关于监事会改革的相关要求,有效落实《中华人民共和国公司法》,坚持和加强党的全面领导,优化企业监督资源,增强核心功能,提高核心竟争力,健全高效协同的监督机制,中建方程在新公司章程中已取消监事有关内容及表述,将监事职权统筹整合到董事会审计与风险委员会,由其依法行使监事职责。中建方程已完成工商登记变更手续。
标普信用评级(中国)有限公司(以下简称“标普信评”)认为,上述人事变动属于国企正常调整,不影响中建方程的信用质量。中建方程的职能定位并未改变,其仍然作为中建股份重要的投资平台,中建股份对中建方程的外部支持维持“高”。

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