Issuer and Rating Results
Issuer: China Merchants Highway Network Technology Holdings Co., Ltd.
Rating Result: AAA / Stable
Tracked Debt Instruments and Rating Results:
| Debt Instrument | Rating | Previous Rating | Previous Rating Validity | Issuance Amount / Debt Balance (Billion) | Duration | Special Terms |
|---|---|---|---|---|---|---|
| 17 Zhaoluxing 02 | AAA | AAA | Until 2025/5/27 | 10 | 2017/08/07~2027/08/07 | -- |
| 25 Zhaoluxing KY01 | AAAsti | AAAsti | Until 2025/10/15 | 15.50 / 15.50 | 2025/10/23~2027/10/23 | (2+N) Renewal Option, Deferred Interest Payment, Redemption, Subordination of Payment |
| 25 Zhaoluxing KY02 | AAAsti | AAAsti | Until 2025/11/17 | 17.50 / 17.50 | 2025/11/27~2027/11/27 | (2+N) Renewal Option, Deferred Interest Payment, Redemption, Subordination of Payment |
Tracking Rating Reasons
According to international practices and regulatory requirements, China Chengxin International is required to conduct tracking ratings of the company's bonds during their duration to monitor their risk levels. This rating is a periodic tracking rating.
Rating Opinion
The tracking maintains the previous rating conclusions for the issuer and debt instruments, primarily based on the significant geographical advantages of the company's controlled and invested road assets, strong competitiveness, and a further decline in the capitalization ratio, indicating a relatively stable financial structure. However, China Chengxin International also notes that a decline in toll revenue may impact the company's operations and overall credit status.
Rating Outlook
China Chengxin International believes that the credit level of China Merchants Highway Network Technology Holdings Co., Ltd. will remain stable over the next 12 to 18 months.
Factors for Rating Adjustment
- Potential Upward Adjustment Factors: Not applicable.
- Potential Downward Adjustment Factors: A decline in the company's status, significant reduction in toll road operation scale or toll revenue that is difficult to recover in the short term; significant deterioration of debt repayment indicators; substantial contraction of financing channels.
Positive Factors
- The company's controlled road assets occupy important geographical locations, mainly along national and provincial main roads, demonstrating clear location advantages.
- The company's controlled and invested road assets maintain strong competitive strength.
- The total capitalization ratio has further declined during the tracking period, indicating a relatively stable financial structure.
Concerns
- The company's toll revenue has declined due to the impact of construction and expansion of the Jing-Jin-Tang expressway and adjacent road sections, leading to traffic diversion.
Project Leader: Zhong Ting
Email: tzhong@ccxi.com.cn
Project Team Members: Wang Zhao
Email: zhwang02@ccxi.com.cn
Rating Director: Phone: (027) 87339288
Main Financial Overview
Note:
- This report is based on the audited financial reports for 2023 and the projected reports for 2024-2025, issued by Xinyong Zhonghe Accounting Firm and KPMG Huazhen Accounting Firm, respectively.
- China Chengxin International adjusts the interest-bearing portions of other current liabilities to short-term debt and the interest-bearing portions of long-term payables and other non-current liabilities to long-term debt.
- Data cited in this report, unless otherwise specified, are based on China Chengxin International's statistical standards, with "--" indicating not applicable or incomparable data.