Lianhe Ratings Global Limited (“Lianhe Global”) has affirmed ‘A-’ global scale Long-term Issuer Credit Rating of Chengdu Chenghua Development Group Co., Ltd. (“CCD”); Issuer Rating Outlook is Stable.
The Issuer Credit Rating reflects a high possibility that the People’s government of Chenghua District (“the Chenghua government”) would provide very strong support to CCD if needed. This mainly considers the Chenghua government’s 90% ownership of CCD, CCD’s strategic position as the flagship platform responsible for urban construction and development in Chengdu’s Chenghua District, as well as the strong linkage between the Chenghua government and CCD, including management appointment, strategic alignment, supervision of major investment and financing plan and ongoing operational and financial support. In addition, the Chenghua government may face significant negative impact on its reputation and financing activities should CCD encounter any operational or financial difficulties.
The Stable Outlook reflects our expectation that CCD’s strategic importance would remain intact while the Chenghua government will continue to ensure CCD’s stable operation.