Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘BBB’ global scale Long-term Issuer Credit Rating with Stable Outlook to Huzhou Moganshan High-tech Group Co., Ltd. (“HMHG” or “the company”)
The Issuer Credit Rating reflects a high possibility that the People’s Government of Deqing County, Huzhou City (“Deqing government”) would provide strong support to HMHG if needed, in light of its full ownership of HMHG, HMHG’s strategic importance as the major local investment and development company (“LIDC”) that is responsible for infrastructure construction and land development in Deqing County, Huzhou City (“Deqing”), especially in Mogan Mountain of Huzhou Hi-tech Industry Development Zone (“MHZ”), and the linkage between the Deqing government and HMHG, including appointment and supervision of the senior management, strategic alignment, major investment and financing plan decisions and ongoing operational and financial support. In addition, the Deqing government may face significant negative impact on its reputation and financing activities if HMHG encounters any operational and financial difficulties.
The Stable Outlook reflects our expectation that HMHG’s strategic importance would remain intact while the Deqing government will continue to ensure HMHG’s stable operation.