Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘BBB’ global scale Long-term Issuer Credit Rating with Stable Outlook to Hubei New Tongdu Urban Investment and Development Group Co., Ltd. (“HNTU” or “the company”)
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 Optics Valley East State-owned Capital Investment and Operation Group Co., Ltd. (“HOVE”, ‘BBB’/Stable), HNTU’s strategic importance as an important local investment and development company (“LIDC”) that is responsible for infrastructure construction and land consolidation in Daye, and the strong linkage between the Daye government and HNTU, including the control of the senior management, management supervision, 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.
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.