Fitch rates Yichun Development BBB-

Fitch Ratings said it gave Yichun Development Investment Group Co., Ltd. BBB- long-term foreign- and local-currency issuer default ratings.

“Yichun is a prefecture-level city in the northwestern part of China's Jiangxi province and is positioned as a regional subcenter. Yichun's economic growth has outpaced the national average in the last decade. Growth was driven by the expansion of pillar industries like medicine, manufacturing and chemicals. Fitch expects that Yichun's rich reserve of lithium, a key component of lithium batteries that are widely used in increasingly popular electric vehicles, and booming new-energy value chain to drive the city's growth,” the agency said in a press release.

Fitch said, “YDIC is an active issuer in the domestic and overseas bond markets, and has issued various types of bonds. Bonds accounted for around 30% of its total debt at end-September 2021.” For example, in 2019, the company sold $300 million of 4.2% bonds due this year.

The outlook is stable.

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