Lianhe Ratings Global Limited (“Lianhe Global”) has affirmed ‘BBB’ global scale Long-term Issuer and Issuance Credit Rating of Hubei Guanggudong State-Owned Capital Investment and Operation Group Ltd. (“GGDSI”); Issuer Rating Outlook is Stable.
The Issuer Credit Rating reflects a high possibility that the People’s Government of Daye City (“the Daye government”) would provide strong support to GGDSI if needed, in light of its indirect full ownership of GGDSI, GGDSI’s strategic importance as the largest local investment and development company (“LIDC”) in terms of asset size in Daye, and the strong linkage between the Daye government and GGDSI, including appointment of the senior management, supervision of major investment and financing plans, strategic alignment, and ongoing operational and financial support. In addition, the Daye government may face significant negative impact on its reputation and financing activities should GGDSI encounters any operational and financial difficulties.
Lianhe Global has also affirmed ‘BBB’ global scale Long-term Issuance Credit Rating of the senior unsecured CNY bonds issued by GGDSI at the same time. A full list of affirmed issuance rating is included in this report.
The Stable Outlook reflects our expectation that GGDSI’s strategic importance would remain intact while the Daye government will continue to ensure GGDSI’s stable operation