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