Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘BBB’ global scale Long-term Issuer Credit Rating with Stable Outlook to Feicheng Huayu Industry Group Co., Ltd. (“FHIG” or “the company”)
The Issuer Credit Rating reflects a high possibility that the People’s Government of Feicheng City, Taian City (“Feicheng government”) would provide very strong support to FHIG if needed, in light of its full ownership of FHIG, FHIG’s strategic importance as an important local investment and development company (“LIDC”) for state-owned assets operation in Feicheng City (“Feicheng”), and the linkage between the Feicheng government and FHIG, including appointment and supervision of the senior management, strategic alignment, major investment and financing plan decisions and ongoing government support, etc. In addition, the Feicheng government may face significant negative impact on its reputation and financing activities if FHIG encounters any operational and financial difficulties.
The Stable Outlook reflects our expectation that FHIG’s strategic importance would remain intact while the Feicheng government will continue to ensure FHIG’s stable operation.