Lianhe Ratings Global Limited (“Lianhe Global”) has affirmed ‘BBB-’ global scale Long-term Issuer Credit Rating of Chongqing Fengdu Culture Tourism Group Co., Ltd. (“CFCT”); Issuer Rating Outlook is Stable.
The Issuer Credit Rating reflects a high possibility that the People’s Government of Fengdu County (“the Fengdu government”) would provide strong support to CFCT if needed. This mainly considers the Fengdu government’s full ownership of CFCT, CFCT’s strategic importance as an important local investment and development company (“LIDC”) responsible for tourism investment, development and operation in Chongqing’s Fengdu County (“Fengdu”), and the linkage between the Fengdu government and CFCT, including the appointment of senior management, strategic alignment, supervision of major investment and financing decisions and ongoing operational and financial support. In addition, the Fengdu government may face significant negative impact on its reputation and financing activities if CFCT encounters any operational and financial difficulties.
The Stable Outlook reflects our expectation that CFCT’s strategic importance would remain intact while the Fengdu government will continue to ensure CFCT’s stable operation.