Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘BBB’ global scale Long-term Issuer Credit Rating with Stable Outlook to Dujiangyan Minjiang Water Group Co., Ltd. (“DMWG” or “the company”)
The Issuer Credit Rating reflects a high possibility that the People’s Government of Dujiangyan City (“Dujiangyan government”) would provide strong support to DMWG if needed. This mainly considers the Dujiangyan government’s indirect majority ownership of DMWG, DMWG’s strategic importance as a major local investment and development company (“LIDC”) responsible for water supply, sewage treatment and other water related businesses in Dujiangyan City, Chengdu City (“Dujiangyan”). In addition, the linkage between the Dujiangyan government and DMWG is strong, including management supervision, strategic alignment and ongoing operational and financial support. Moreover, the Dujiangyan government may face significant negative impact on its reputation and financing activities if DMWG encounters any operational and financial difficulties.
Dujiangyan is a county-level city under the administration of Chengdu City. Its GDP grew steadily by 5.5% to RMB54.5 billion in 2024.
The Stable Outlook reflects our expectation that DMWG’s strategic importance would remain intact while the Dujiangyan government will continue to ensure DMWG’s stable operation.