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