Changchun Urban Dev. Invs. Hldgs (Grp) Co. Ltd. 's (CCDG) Baa2 issuer rating is based on the Changchun city government's governmental capacity to support (GCS) score of baa2 and our assessment of how the company's characteristics affect the Changchun city government's propensity to support, resulting in no notching adjustment from Changchun's GCS.

Our assessment of the Changchun city government's GCS score reflects Jilin's relatively weak position among China's provinces and its rising economic pressure; and Changchun's status as a provincial capital, one of the higher administrative levels in our ranking of regional and local governments (RLGs) in China.

CCDG's Baa2 rating reflects the Changchun city government's propensity to support the company, because of its 100% ownership by the city government; CCDG's status as the largest local government-owned entity by asset size in Changchun; its role in providing essential public services in the city, including urban infrastructure, affordable housing development, water supply and sewage treatment; and its strong track record of receiving government cash payments.

CCDG's rating also takes into account the company's high debt, attributable to its capital spending on public-policy projects with long payback periods.

On 6 December 2023, the outlook was changed to negative from stable, following the change of the outlook on Government of China to negative from stable.