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Its portfolio of commercial businesses faces market competition, with substitutes available from the public and private sectors. 'Strong' Financial Implications of Default: The government has strong incentive to provide HFI with tangible support, if it faces liquidity problems, because the company carries out key industrial investments and crucial public services in the city. HFI has access to the domestic and international capital markets as well as a gross credit line from 25 banks totaling CNY88.1 billion at end-June 2020, the company said. A default by HFI would greatly affect the government's credibility and have a significant impact on the availability and cost of financing options for the municipality and other regional GREs. 'b+' Standalone Credit Profile: HFI's Standalone Credit Profile is assessed under Fitch's Public Sector, Revenue Supported Entities Rating Criteria. Revenue defensibility is assessed at 'Weaker' as HFI generates most of its revenue from thin-margin commodity trading and real estate-focused business trust services. Its revenue is subject to commodity price volatility and risks related to concentration in trading partners and the property sector. Operating risk is assessed at 'Midrange' due to well-identified cost drivers, an adequate supply of resources and labour with limited volatility, and adequate mechanisms for capital planning and management. Its financial profile is assessed at 'Weaker' as Fitch forecasts HFI's net debt/EBITDA to be above 5x in 2020-2022. HFI's reliance on short-term financing increases refinancing risk, although this is mitigated by strong funding support from multiple banks and ready access to capital-market funding. Fitch assesses her comment is here HFI under our Government-Related Entities Rating Criteria, reflecting Hangzhou municipality's very strong control and ownership, moderate support record, moderate socio-political implication of a default by HFI, and strong financial implication of a default by HFI.