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