Lianhe Ratings Global Limited (“Lianhe Global”) has upgraded the global scale Long-term Issuer and Issuance Credit Rating of Jingjiang Port Group Co., Ltd. (“JPG” or “the company”) to ‘BBB’ from ‘BBB-’; Issuer Rating Outlook Stable.
The Issuer Credit Rating upgrade reflects the company’s increasing strategic importance in Jingjiang, as the company is deepening its roles in the regional development under the guidance of the People’s Government of Jingjiang City, Taizhou City (“Jingjiang government”). The company is well-positioned to enhance its roles in infrastructure construction, resettlement, land consolidation, and other supporting facilities projects in Jingjiang Port Area. It is aligned with the development plans of the Jingjiang government and strengthened JPG’s role as the major entity responsible for port development in Jingjiang.
We believe this continues to present a high possibility that the Jingjiang government would provide strong support to JPG if needed, in light of its full ownership of JPG, JPG’s strategic position as the major local investment and development company (“LIDC”) for port construction and operation in Jingjiang, and the linkage between the Jingjiang government and JPG, including supervision over the company through its shareholders, strategic alignment and ongoing operational and financial support. In addition, the Jingjiang government may face significant negative impact on its reputation, business and financing activities if JPG encounters any operational and financial difficulties.
Lianhe Global has also upgraded the global scale Long-term Issuance Credit Rating of the senior unsecured bonds issued by JPG to ‘BBB’ from ‘BBB-’ at the same time. A full list of upgraded issuance rating is included in this report.
The Stable Outlook reflects our expectation that JPG strategic importance would remain intact while the Jingjiang government will continue to ensure JPG’s stable operation.