Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘BBB-’ global scale Long-term Issuer Credit Rating with Stable Outlook to Jiangsu Yufeng Tourism Development Co., Ltd. (“JYTD” or “the company”)
The Issuer Credit Rating reflects a high possibility that the People’s Government of Dafeng District, Yancheng City (“Dafeng government”) would provide strong support to JYTD if needed, in light of its indirect full ownership of JYTD, JYTD’s strategic importance as the important local investment and development company (“LIDC”) responsible for infrastructure construction and urban redevelopment in Dafeng, Yancheng City (“Dafeng”), and the linkage between the Dafeng government and JYTD, 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 Dafeng government may face significant negative impact on its reputation and financing activities if JYTD encounters any operational and financial difficulties.
The Stable Outlook reflects our expectation that JYTD’s strategic importance would remain intact while the Dafeng government will continue to ensure JYTD’s stable operation.