Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘BBB+’ global scale Long-term Issuer Credit Rating with Stable Outlook to Chengdu Vartaim Cultural Tourism Development Co., Ltd.
The Issuer Credit Rating reflects a high possibility that The People’s Government of Chenghua District (“the Chenghua government”) would provide strong support to Chengdu Vartaim Cultural Tourism Development Co., Ltd. (“Vartaim” or the company) if needed. This mainly considers the Chenghua government’s indirect majority ownership of Vartaim, Vartaim’s strategic position as an important investment and development company responsible for urban renewal, as well as development and operation of cultural tourism in Chengdu’s Chenghua District, and the strong linkage between the Chenghua government and Vartaim, including management supervision, strategic alignment, and ongoing operational and financial support. In addition, the Chenghua government may face significant negative impact on its reputation and financing activities should Vartaim encounter any operational or financial difficulties.
The Stable Outlook reflects our expectation that Vartaim’s strategic importance would remain intact while the Chenghua government will continue to ensure Vartaim’s stable operation.