Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘A’ global scale Long-term Issuer Credit Rating with Stable Outlook to Jinhua Communications Investment Group Co., Ltd. (“JCIG” or “the company”)
The Issuer Credit Rating reflects a high possibility that the People’s Government of Jinhua City, Zhejiang Province (“Jinhua government”) would provide strong support to JCIG if needed, in light of its majority ownership of JCIG, JCIG’s strategic importance as the sole local investment and development company (“LIDC”) that is responsible for transportation-related infrastructure construction, management and operation in Jinhua City, Zhejiang Province (“Jinhua”), and the key entity for infrastructure construction and land consolidation in Jinyi New Are (“Jinyi”), and the linkage between the Jinhua government and JCIG, 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 Jinhua government may face significant negative impact on its reputation and financing activities if JCIG encounters any operational and financial difficulties.
The Stable Outlook reflects our expectation that JCIG’s strategic importance would remain intact while the Jinhua government will continue to ensure JCIG’s stable operation.