Following a desktop analysis of 27 local government financing vehicles (LGFVs) in Tianjin, we have found that median indicative issuer credit quality is slightly higher than the national median level.
In our view, there is significant pressure from hidden debt in Tianjin, with the city under a heavier burden than most of China’s other provincial-level administrative regions.
City-level LGFVs and vehicles in Binhai New Area are, in our opinion stronger in Tianjin in terms of overall indicative issuer credit quality. LGFVs in Tianjin’s four suburban districts and other regions have moderate-to-lower indicative issuer credit quality.