Lianhe Ratings Global Limited (“Lianhe Global”) has affirmed ‘BBB-’ global scale Long-term Issuer and Issuance Credit Rating of Chengdu Dongjin Huaitou Ronghe Industry Investment Co., Ltd. (“CDHRI” or “the company”); Issuer Rating Outlook Stable.
The Issuer Credit Rating reflects a high possibility that the People’s Government of Jintang County, Chengdu City (“Jintang government”) would provide strong support to CDHRI if needed, in light of its full ownership of CDHRI, CDHRI’s strategic importance as the key local investment and development company (“LIDC”) that is responsible for infrastructure construction and land consolidation in Jintang County, Chengdu City (“Jintang”), especially in Huaizhou Xincheng Functional Area (“Xincheng”), and the linkage between the Jintang government and CDHRI, including appointment and supervision of the senior management, strategic alignment, major investment and financing plan decisions and ongoing operational and financial support. In addition, the Jintang government may face significant negative impact on its reputation and financing activities if CDHRI encounters any operational and financial difficulties.
The Stable Outlook reflects our expectation that CDHRI’s strategic importance would remain intact while the Jintang government will continue to ensure CDHRI’s stable operation.