Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘BBB’ global scale Long-term Issuer Credit Rating with Stable Outlook to Taizhou Ruima Urban Development and Construction Co., Ltd. (“TRUD” or “the company”)
The Issuer Credit Rating reflects a high possibility that the People’s Government of Taizhou Gaogang District (Taizhou Medical High-tech Industrial Development Zone) (“the Gaogang government”) would provide strong support to TRUD if needed. This mainly considers the Gaogang government’s vast majority ownership of TRUD and TRUD’s strategic importance as a major local investment and development company (“LIDC”) responsible for project development and urban operation in Lingang Economic Park of Taizhou Medical High-tech Industrial Development Zone (“Medical High-tech Zone”). In addition, the linkage between the local government and TRUD is strong, including management supervision, strategic alignment and ongoing operational and financial support. Moreover, the Gaogang government may face significant negative impact on its reputation and financing activities if TRUD encounters any operational and financial difficulties.
Gaogang District (“Gaogang”) is a municipal district under Jiangsu’s Taizhou City. In June 2021, Gaogang and Medical High-tech Zone officially launched integrated development. In 2024, Gaogang’s GDP grew steadily by 3.9% to RMB112.1 billion, while the Gaogang government’s budgetary revenue increased by 1.9% to RMB10.5 billion.
The Stable Outlook reflects our expectation that TRUD’s strategic importance would remain intact while the Gaogang government will continue to ensure TRUD’s stable operation.