Lianhe Ratings Global Limited (“Lianhe Global”) has affirmed ‘A-’ global scale Long-term Issuer and Issuance Credit Rating of Fujian Zhanglong Group Co., Ltd. (“Zhanglong Group” or “the company”); Issuer Rating Outlook Stable
The Issuer Credit Rating reflects a high possibility that the Zhangzhou Municipal People’s Government (“Zhangzhou government”) would provide very strong support to Zhanglong Group if needed, in light of its 90% ownership of Zhanglong Group, Zhanglong Group’s strategic position as an important state-owned asset operation and development entity of Zhangzhou and the strong linkage between the Zhangzhou government and Zhanglong Group, including management supervision, strategic alignment, and ongoing operational and financial support. In addition, the Zhangzhou government may face significant negative impact on its reputation, business and financing activities should Zhanglong Group encounter any operational or financial difficulties.
Zhangzhou is a prefecture-level city in southern Fujian Province. Zhangzhou’s GDP grew steadily by 6.1% year-over-year in 2024 and reached RMB606.4 billion. The budgetary revenue of the Zhangzhou government stayed roughly flat at RMB27.6 billion in 2024 compared with RMB27.9 billion in 2023.
The Stable Outlook reflects our expectation that Zhanglong Group’s strategic importance would remain intact while the Zhangzhou government will continue to ensure Zhanglong Group’s stable operation.
Lianhe Global has also affirmed ‘A-’ global scale Long-term Issuance Credit Rating of the senior unsecured USD bonds issued by Zhanglong Group at the same time. A full list of affirmed issuance rating is included in this report.