Lianhe Ratings Global Limited (“Lianhe Global”) has upgraded global scale Long-term Issuer and Issuance Credit Rating of Huai’an Traffic Holding Group Co., Ltd. (“Huai’an Traffic” or “the company”) to ‘BBB+’ from ‘BBB’; Issuer Rating Outlook Stable
The Issuer Credit Rating upgrade reflects an upgrade in our internal credit assessment on Jiangsu’s Huai’an Municipal People’s Government (“the Huai’an government”), and the expectation of continuing of a high possibility that the Huai’an government would provide strong support to Huai’an Traffic if needed, in light of its indirect full ownership of Huai’an Traffic, Huai’an Traffic’s strategic position as an important local investment and development company (“LIDC”) that is responsible for transportation investment, construction and operation in Huai’an and the strong linkage between the Huai’an government and Huai’an Traffic including management supervision, strategic alignment, and ongoing operational and financial support. In addition, the Huai’an government may face significant negative impact on its reputation and financing activities should Huai’an Traffic encounter any operational or financial difficulties.
Lianhe Global has also upgraded the global scale Long-term Issuance Credit Rating of the senior unsecured USD bonds issued by Huai’an Traffic to ‘BBB+’ from “BBB” at the same time. A full list of Issuance Rating is included in this report.
The Stable Outlook reflects our expectation that Huai’an Traffic’s strategic importance would remain intact while the Huai’an government will continue to ensure Huai’an Traffic’s stable operation.