Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘BBB-’ global scale Long-term Issuer Credit Rating with Stable Outlook to Chongqing Tongda Investment Co., Ltd. (“CTI” or “the company”)
The Issuer Credit Rating reflects a high possibility that the People’s Government of Zhong County, Chongqing Municipality (“Zhongxian government”) would provide strong support to CTI if needed, in light of its indirect full ownership of CTI, CTI’s strategic importance as the most important local investment and development company (“LIDC”) responsible for infrastructure construction in Zhong County (“Zhongxian”), Chongqing Municipality (“Chongqing”), and the linkage between the Zhongxian government and CTI, 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 Zhongxian government may face significant negative impact on its reputation and financing activities if CTI encounters any operational and financial difficulties.
The Stable Outlook reflects our expectation that CTI’s strategic importance would remain intact while the Zhongxian government will continue to ensure CTI’s stable operation.