Following a desktop analysis
of 27 local government
financing vehicles (LGFVs)
in Tianjin, we have found
that median indicative
issuer credit quality
is slightly higher than
the national median level.
In our view, there is
significant pressure from
hidden debt in Tianjin,
with the city under a
heavier burden than most
of China’s other provincial-level
administrative regions.
City-level LGFVs and vehicles
in Binhai New Area are,
in our opinion stronger
in Tianjin in terms of
overall indicative issuer
credit quality. LGFVs
in Tianjin’s four suburban
districts and other regions
have moderate-to-lower
indicative issuer credit quality.