Lianhe Ratings Global Limited (“Lianhe Global”) has upgraded the global scale Long-term Issuer Credit Rating of Chengdu Sino French Ecological Park Investment Development Co., Ltd. (“CSID” or “the company”) to ‘BBB’ from ‘BBB-’; Issuer Rating Outlook Stable.
The Issuer Credit Rating upgrade reflects the stronger government support from the People’s Government of Longquanyi District, Chengdu City (“Longquanyi government”). This support includes increased government subsidies due to its expanding scale of infrastructure projects and ongoing capital injections. It also underscores CSID’s crucial role as the sole local investment and development company (“LIDC”) in Chengdu Sino French Ecological Park (“Ecological Park”). It is aligned with the development plans of the Longquanyi government and strengthened CSID’s role as the major entity responsible for regional development in Longquanyi.
We believe this continues to present a high possibility that the Longquanyi government would provide strong support to CSID if needed, in light of its majority ownership of CSID, CSID’s strategic importance as the sole state-owned entity for infrastructure investment, construction and operation in the Ecological Park, and the linkage between the Longquanyi government and CSID, 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 Longquanyi government may face negative impact on its reputation and financing activities if CSID encounters any operational and financial difficulties.
The Stable Outlook reflects our expectation that CSID strategic importance would remain intact while the Longquanyi government will continue to ensure CSID’s stable operation.