Lianhe Ratings Global Limited (“Lianhe Global”) has affirmed ‘BBB-’ global scale Long-term Issuer Credit Rating of Emeishan Modern Agricultural Development Group Co., Ltd. (“EMADG” or “the company”); Issuer Rating Outlook is Stable
The Issuer Credit Rating reflects a high possibility that the People’s Government of Emeishan City, Leshan City (“Emeishan government”) would provide strong support to EMADG if needed, in light of its full ownership of EMADG, EMADG’s strategic importance as the key local investment and development company (“LIDC”) that is responsible for infrastructure construction, rural revitalization and affordable housing construction in Emeishan City, Leshan City (“Emeishan”). In addition, the linkage between the local government and EMADG is strong, including management supervision, strategic alignment and ongoing operational and financial support. Moreover, the local government may face a significant negative impact on its reputation and financing activities if EMADG encounters any operational and financial difficulties.
Emeishan is a county-level city of Leshan City, Sichuan Province. It’s GDP grew steadily by 6.9% year-over-year in 2023 and reached RMB40.3 billion. Its budgetary reached RMB2.3 billion in 2023, representing a year-over-year growth rate of 5.0%.
The Stable Outlook reflects our expectation that EMADG’s strategic importance would remain intact while the Emeishan government will continue to ensure EMADG’s stable operation.