Lianhe Ratings Global Limited (“Lianhe Global”) has affirmed ‘BBB+’ global scale Long-term Issuer Credit Rating of Jiangsu Fangyang Group Co., Ltd. (“JFG”). Issuer Rating Outlook revised to Positive.
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 Positive Outlook reflects our expectation that JFG’s strategic importance would be strengthened given its expanding role in regional industry development. As the production capacities of several large-scale petrochemical projects in Xuwei District are gradually realized, the company is well-positioned to enhance its involvement in various aspects of regional industrial growth, including port logistics, utility sales, wastewater treatment, and environmental protection. Besides, the Lianyungang government will continue to ensure JFG’s stable operation.