Lianhe Ratings Global Limited (“Lianhe Global”) has affirmed ‘BBB’ global scale Long-term Issuer and Issuance Credit Rating of Hubei New Tongdu Urban Investment and Development Group Co., Ltd. (“HNTU” or “the company”); 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 HNTU if needed, in light of its indirect 100% ownership of HNTU through Hubei Guanggudong State-Owned Capital Investment and Operation Group Ltd. (“GGDSI”, ‘BBB’/Stable), HNTU’s strategic importance as an important local investment and development company (“LIDC”) that is responsible for urban development and operation in Huangshi’s Daye, and the strong linkage between the Daye government and HNTU, 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 HNTU encounters any operational and financial difficulties.
Lianhe Global has also affirmed ‘BBB’ global scale long-term Issuance Credit Rating of the USD bonds issued by HNTU and guaranteed 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 HNTU’s strategic importance would remain intact while the Daye government will continue to ensure HNTU’s stable operation.