Fitch Ratings has withdrawn China-based LVGEM (China) Real Estate Investment Company Limited's Long-Term Foreign-Currency Issuer Default Rating (IDR) of 'CCC'.

Fitch has also withdrawn LVGEM's senior unsecured rating and the rating on its outstanding US dollar senior notes, issued by Gemstones International Limited, of 'CCC', with a Recovery Rating of 'RR4'.

Fitch is withdrawing the ratings as LVGEM has chosen to stop participating in the rating process. Therefore, Fitch will no longer have sufficient information to maintain the ratings. Accordingly, Fitch will no longer provide ratings or analytical coverage for LVGEM.

Key Rating Drivers

No longer relevant, as the ratings have been withdrawn.

RATING SENSITIVITIES

No longer relevant, as the ratings have been withdrawn.

Best/Worst Case Rating Scenario

International scale credit ratings of Non-Financial Corporate issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. For more information about the methodology used to determine sector-specific best- and worst-case scenario credit ratings, visit https://www.fitchratings.com/site/re/10111579.

Issuer Profile

LVGEM is a small property developer specialising in urban-renewal projects in the Greater Bay Area, primarily in Shenzhen and Zhuhai. It recorded contracted sales of CNY3.7 billion in 2021 and it owns investment properties in Shenzhen and Hong Kong. It is listed on the Hong Kong Stock Exchange.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING

The principal sources of information used in the analysis are described in the Applicable Criteria.

ESG Considerations

Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. ESG issues are credit neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg

Following the withdrawal of ratings for LVGEM, Fitch will no longer be providing the associated ESG Relevance Scores.

RATING ACTIONS

Entity / Debt

Rating

Prior

LVGEM (China) Real Estate Investment Company Limited

LT IDR

WD

Withdrawn

CCC

senior unsecured

LT

WD

Withdrawn

CCC

Gemstones International Limited

senior unsecured

LT

WD

Withdrawn

CCC

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VIEW ADDITIONAL RATING DETAILS

Additional information is available on www.fitchratings.com

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