HONG KONG, April 13, 2026. CSPI Ratings has upgraded the global scale long-term issuer credit rating (LTICR) of Suining Investment Group Co., Ltd. (referred to as ‘SIG’ or ‘the company’) from ‘BBB’ to ‘BBB+’, with a stable outlook. This upgrade mainly reflects the enhancement in Suining Municipal Government’s overall credit profile under the central government’s coordinated debt‑resolution policy.
SIG is the largest wholly state-owned enterprise under the Suining Municipal Government, with core businesses spanning infrastructure construction, urban development, water services, public transportation, asset management, and industrial investment. The Suining State‑owned Assets Supervision and Administration Commission (referred to as ‘Suining SASAC’) holds 100% of the company’s equity and is its sole shareholder and ultimate controlling entity. The company’s issuer rating reflects its stand‑alone credit profile (SACP) of ‘b‑’ and our view that the Suining Municipal Government has an extremely strong willingness to provide external support should the company encounter financial distress.
KEY RATING RATIONALES
Credit Strengths
The most important entity for infrastructure development and state‑owned capital operations in Suining. SIG is responsible for infrastructure construction and urban development, as well as key public‑service functions such as grain and oil storage, water supply and drainage, and public transportation. In recent years, the company has advanced its market‑oriented transformation by expanding into trading, asset management, and industrial investment. We view the company’s business stability and continuity as sound. As Suining’s core participant in urban development and state‑owned asset operations, it is deeply embedded in the local economy and urbanisation process and has solid growth prospects. We believe the Suining Municipal Government would take necessary measures to ensure the company’s sustainable operations should it face operational or financial difficulties, in order to safeguard regional economic stability.
Strong and consistent support from the Suining Municipal Government. The company is the key investment and financing platform for Suining’s infrastructure development, with Suining SASAC directly holding 100% of its shares. In recent years, the company has received substantial government support through fiscal subsidies and asset injections. In 2023, 2024, and the first nine months of 2025, the company received RMB 26.5 billion, RMB 24.0 billion, and RMB 13.8 billion in fiscal subsidies, respectively, significantly enhancing its profitability. The government has also continued to inject high‑quality assets—including equity in local SOEs and sand‑mining concession rights—into the company on a no‑cost basis. As of the end of September 2025, the company’s paid‑in capital remained at RMB 10.0 billion, while capital reserves increased to RMB 35.4 billion, reflecting a continuous strengthening of its capital adequacy. Senior management is appointed and evaluated directly by the Suining government, which, in our view reflects a high degree of government control over the company’s operations. Furthermore, any default by the company would raise concerns among market participants regarding the Suining government’s creditworthiness and reputation. Therefore, we believe the Suining government has a very strong willingness to continue providing support to the company.
Strong economic fundamentals of Sichuan Province and a strengthened credit profile of the Suining Municipal Government. Sichuan has abundant resources, a solid industrial base, and maintains robust economic growth. In 2025, the province’s GDP reached RMB6,766.5 billion, up 5.5% year‑on‑year. Given the rapid expansion of high‑tech investment, the complementary structure of its industrial and service sectors, and Sichuan’s strategic position in advancing the New Western Development initiative and benefiting from policies supporting the Chengdu‑Chongqing economic circle, we remain optimistic about its long‑term growth prospects. In 2025, Suining’s GDP reached RMB200.2 billion, a 7.1% increase year‑on‑year, ranking among the highest in the province and demonstrating strong economic momentum. Although Suining’s overall debt level remains elevated, sustained economic growth and strengthened debt‑management efforts by higher‑level governments are expected to help slow the pace of future debt expansion and improve alignment between debt growth and economic development. We believe that Suining’s overall credit profile has improved under the central government’s enhanced debt‑resolution policies.
Credit Weaknesses
High financial leverage. The company’s debt has continued to rise in recent years, with interest‑bearing debt reaching RMB 46.1 billion at year‑end 2024. Given the ongoing capital needs of projects under construction and equity investments, its debt level is likely to continue increasing over the next few years. We estimate that during the 2023–2027 forecast period, the company’s weighted average gross debt-to-total capitalisation ratio will be 55.9%, indicating high leverage. In addition, EBITDA remains modest relative to total debt. We estimate a weighted average debt‑to‑EBITDA ratio of 20.6x and an average EBITDA interest‑coverage ratio of 1.0x over the same period. Operating cash flow remains weak, constrained by long payment cycles for infrastructure projects. As a result, we expect the FFO-to-debt ratio to remain low over the next several years.
Low return on capital and tight liquidity. The company’s core businesses—infrastructure construction and public services—are subject to industry characteristics that lead to low margins and modest operating efficiency. We estimate a weighted average ROIC of only 2.8% during 2023–2027. In addition, slow operating turnover, insufficient operating cash flow, and a large amount of debt maturing within the next year mean the company must rely on refinancing to maintain liquidity. We estimate its cash-flow liquidity ratio for 2026 at 0.4x.
RATING OUTLOOK
The stable outlook reflects our view that the Suining Municipal Government’s credit profile will remain stable and that, with the government’s extremely strong support, the company will be able to sustain its expected business performance.
We would consider a rating downgrade if 1) SIG’s ties with the Suining Municipal Government loosen from the current level; 2) Suining’s economic growth slows sharply or its liquidity deteriorates materially; and/or 3) SIG’s business interactions with the Suining Municipal Government decline and its market position in Suining’s infrastructure development and state‑owned capital operations weakens significantly.
We would consider a rating upgrade if 1) the Suining Municipal Government’s debt level decreases substantially or its fiscal deficit pressures ease meaningfully; and/or 2) SIG’s importance to the Suining Municipal Government increases significantly.
ANALYSTS CONTACT
Primary Analyst
Jameson Zuo
+852 3615 8341
Secondary Analyst
Siqi Lin
+86 755 8321 0225
Committee Chair
Winnie Guo
+852 3615 8344
MEDIA CONTACT
RATING SERVICE CONTACT
Date of Relevant Rating Committee: 26 March 2026
Additional information is available on www.cspi-ratings.com
Related Criteria
General Corporate Rating Criteria (15 March 2018)
Corporate Financial Adjustments and Ratio Definitions (7 May 2018)
Government-Related Entities Rating Criteria (31 August 2018)
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