Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘A+’ global scale Long-term Issuer Credit Rating to Henan Zhongyu Credit Promotion Co., Ltd. (“HZCP”); Outlook is Stable
The Issuer Rating reflects HZCP’s strong franchise and market position as the sole credit enhancement company in Henan Province (“Henan”) as well as its strong capital base for future business growth. The rating also considers its concentrated business profile, diversified revenue resources, increasing profitability and low debt burden. Besides, the People’s Government of Henan Province (“Henan government”) would provide strong support to HZCP if needed, in light of its majority ownership of HZCP, HZCP’s strategic importance as the sole provincial credit enhancement company in Henan, the linkage between the Henan government and HZCP and ongoing financial and policy support. In addition, the Henan government may face significant negative impact on its reputation and financing activities if HZCP encounters any operational and financial difficulties.
The Stable Outlook reflects our expectation that HZCP will maintain its monopoly market position in Henan’s credit enhancement market and an adequate funding and liquidity position which is commensurate with its credit profile.