Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘BBB+’ global scale Long-term Issuer Credit Rating with Stable Outlook to Jiangsu Fangyang Group Co., Ltd. (“JFG” or “the company”)
The Issuer Credit Rating reflects a high possibility that the People’s Government of Lianyungang City, Jiangsu Province (“Lianyungang government”) would provide strong support to JFG if needed, in light of its full ownership of JFG, JFG’s strategic importance as the key local investment and development company (“LIDC”) that is responsible for infrastructure construction and state-owned asset operation in Lianyungang City, Jiangsu Province (“Lianyungang”), especially in the Xuwei New District (“Xuwei District”), and the linkage between the Lianyungang government and JFG, 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 Lianyungang government may face significant negative impact on its reputation and financing activities if JFG encounters any operational and financial difficulties.
The Stable Outlook reflects our expectation that JFG’s strategic importance would remain intact while the Lianyungang government will continue to ensure JFG’s stable operation.