Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘BBB-’ global scale Long-term Issuer Credit Rating with Stable Outlook to Hunan Yuanjiang Qionghu Investment Construction Development Group Co., Ltd. (“HYQI” or “the company”)
The Issuer Credit Rating reflects a high possibility that the People’s Government of Yuanjiang (“the Yuanjiang government”) would provide very strong support to HYQI if needed, in light of its 90% ownership of HYQI, the strategic importance of HYQI as the most important local investment and development company responsible for infrastructure investment and development in Yuanjiang, and the linkage between the Yuanjiang government and HYQI, including management appointment, supervision over HYQI’s strategic development, major investment and financing plans, strategic alignment and ongoing operational and financial support. In addition, the local government may face significant negative impact on its reputation and financing activities if HYQI encounters any operational and financial difficulties.
The Stable Outlook reflects our expectation that HYQI’s strategic importance would remain intact while the local government will continue to ensure HYQI’s stable operation.