The Group Held Special Training"Listed Company to Maintain Investment Rating"
Release Date:2014-06-24 10:15:50

On the morning of June 19, the Group's Capital Management Department and Human Resource Department held special training on “Listed Company to Maintain Investment Rating" at the Conference Room on 11th Floor of IFC Center, which was one of the professional trainings of Yuexiu Holding Limited in 2014. The Group leadership attached great importance to the training, President Zhang Zhaoxing, Vice President and General Manager Zhu Chunxiu and other leaders attended the event. About 160 attendees were major leaders of various industrial sectors, mid-level leadership from the headquarters and colleagues from Yuexiu Holding Limited headquarters and various sectors.

The training was chaired by Li Feng, Assistant General Manager of the Group, which consisted of four parts. First, Gan Yinlin, Deputy Director of Capital Management Department, introduced "the current rating situation of the four listed companies of the Group", talked about the overall situation of rating and issuing bonds of these companies, and particularly described the daily work and requirements for maintaining ratings.

Mr. Liang Zhenbang, Assistant Vice President of the bonds rating agency-Moody, subsequently shared the rating system and rating models, and took Yuexiu Property as an example to systematically introduce Moody's rating methodology for Yuexiu Property, from general rating considerations, rating model data analysis and rating basis of Yuexiu Property.

Moody's Assistant Vice President Liang Zhenbang

Then Mr. Hung Chengming and Miss Wu Zhijun , executive directors of Morgan Stanley, described how to treat the enterprise rating bonds from the perspective of capital market, introduced the importance of credit rating for the enterprise financing, and analyzed the significance of obtaining and maintaining investment rating for the development of enterprise in the future, from the situation of China's real estate corporate bond issuance.

Mr. Chen Kaijie, Chief Financial Officer of Chong Hing Bank, and Mr. Zheng Wenxi , Manager of Credit Assessment Department, then analyzed the influence of rating on the enterprise from the perspective of credit bank, emphasizing why the borrowing enterprise with good credit rating can reduce the cost of borrowing, and gave details of procedures for bank credit review.

Finally, President Zhang Zhaoxing made important instructions on investment rating maintenance of the Group and listed companies. Mr. Zhang pointed out that we should focus on one point in rating maintenance, and the enterprise should expand the scale truly by enhancing its strength, rather than the leverage effect and debt. At this point, we had good foundation and prospect. Secondly, as pointed out by the training experts, the rating agency carried out comprehensive analysis of listed companies macro economy, corporate governance, financial condition and other factors, in the face of such a flexible and objective way, we should be confident of rating maintenance for the four companies. Thirdly, we should establish a strong and effective communication mechanism with the rating agency. Then Mr. Zhang stressed that loans and financing only play one role in maintaining ratings. More importantly, we should enhance the brand reputation and value of the whole Group, which was well represented in the successful acquisition of Chong Hing Bank supported by the rating of investment grade of the three listed companies.Another importance of rating maintenance is risk control. We should conduct benchmarking analysis in accordance with professional indicators of rating agency, to truly and effectively control risks and promote the healthy development of the Group.

Mr.Zhang concluded in his speech that to maintain investment grade rating should be the guiding idea deep in our soul. To maintain investment grade rating is one of the battles that we must win this year. It is an important principle for business of our enterprise. We should pay attention to investment rating maintenance, and we are confident to maintain this rating.