The Issuer Credit Rating reflects a high possibility that the People’s Government of Hanjiang District (“the Hanjiang government”) would provide strong support to JHG if needed, in light of its indirect majority ownership of JHG, JHG’s strategic importance as a key state-owned building contractor in Yangzhou’s Hanjiang District (“Hanjiang”), and the linkage between the Hanjiang government and JHG, including approval of its senior management appointment, strategic alignment, and major investment and financing decisions and ongoing operational and financial support. In addition, the Hanjiang government may face significant negative impact on its reputation and financing activities if JHG encounters any operational and financial difficulties.
The Stable Outlook reflects our expectation that JHG’s strategic importance would remain intact while the Hanjiang government will continue to ensure JHG’s stable operation.