Jiaxing City Invs and Dev Group Co., Ltd 's (JCD) Baa2 issuer rating is based on the Jiaxing city government's capacity to support (GCS) score of baa1 and our assessment of how the company's characteristics affect the Jiaxing government's propensity to support, resulting in a one-notch downward adjustment.

Our assessment of Jiaxing's GCS reflects the city's status as a prefecture-level city, one of the lower administrative levels in our assessment of the hierarchy of regional and local governments (RLGs) in China (A1 negative); and its state-owned enterprise (SOE)-related contingent liability risks.

The Baa2 issuer rating reflects the Jiaxing government's propensity to support JCD, which is based on the company's ultimate ownership by the Jiaxing city government; the company's important role as one of the major platforms in Jiaxing providing essential public services, including infrastructure development, land consolidation and piped gas operations, and its strategic role as a dominant entity undertaking urban upgrade projects; its track record of receiving government payments; its strong access to funding; and its low exposure to contingent risks.

However, the one-notch downward adjustment from the Jiaxing government's GCS score reflects the company's medium exposure to commercial activities.

On December 6, 2023, the outlook was changed to negative from stable, following the change in the outlook on the A1 rating of China to negative from stable.