Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘BBB-’ global scale Long-term Issuer Credit Rating with Stable Outlook to Dongtai Xixi Tourism and Cultural Scenic Area Investment Development Co., Ltd. (“DXTCS” or “the company”)
The Issuer Credit Rating reflects a high possibility that the People’s Government of Dongtai City, Jiangsu Province (“Dongtai government”) would provide strong support to DXTCS if needed, in light of its indirect full ownership of DXTCS, DXTCS’s strategic importance as the key local investment and development company (“LIDC”) that is responsible for infrastructure construction and resettlement housing construction in Dongtai City, Jiangsu Province (“Dongtai”), especially in Xixi Tourism and Cultural Scenic Area (“Xixi Area”), and the linkage between the Dongtai government and DXTCS, 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 Dongtai government may face significant negative impact on its reputation and financing activities if DXTCS encounters any operational and financial difficulties.
The Stable Outlook reflects our expectation that DXTCS’s strategic importance would remain intact while the Dongtai government will continue to ensure DXTCS’s stable operation.