Fitch believes that the local government's support for Yuntou Group is "medium". According to its report, from 20 15 to 20 19, Yuntou Group received the capital injection of about 1 10 billion yuan from the Yunnan provincial government, of which about 90% was used as the railway development fund of Yunnan Province by the company's important subsidiaries. Compared with the revenue scale of Yuntou Group, the company receives little subsidy, and the capital injection provided by the government for its project investment is not enough to cover its annual capital expenditure.
The above-mentioned rating companies also pointed out that Yuntou Group is an important investment holding platform in Yunnan Province and manages diversified investment portfolios, including investments in medical care, science and technology, real estate development, manufacturing and transportation. However, most of Yuntou Group's business faces competition from private enterprises in the province and other government-related enterprises. The company's business is mostly carried out at the subsidiary level, and the holding company only serves as a financing platform for some subsidiaries. If Yuntou Group defaults, it will only adversely affect the services of subsidiaries with weak financing capacity, so Fitch rated the company as "medium" in social and economic importance. (Zhongxin Jingwei APP)
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