Lianhe Ratings Global Limited (“Lianhe Global”) has upgraded the global scale Long-term Issuer and Issuance Credit Rating of Jining City Development Capital Holdings Co., Ltd. (“JCDCH” of “the company”) to ‘BBB+’ from ‘BBB’; Issuer Rating Outlook Stable
The Issuer Credit Rating upgrade reflects the strengthened importance of JCDCH in Shandong’s Jining City (“Jining”), in view of its increasing contribution to Jining’s urban development and industrial upgrade. The company continues to be a major local investment and development company (“LIDC”) in Jining, playing an important role in local social and economic development.
We believe this presents a high possibility that the Jining Municipal People’s Government (“Jining government”) would provide strong support to JCDCH if needed, in light of its full ownership of JCDCH and its strategic importance. The linkage between the Jining government and JCDCH is strong, including management supervision, strategic alignment, and ongoing operational and financial support. In addition, the Jining government may face significant negative impact on its reputation and financing activities if JCDCH encounters any operational and financial difficulties.
Jining is a prefecture-level city located southwest of Shandong Province. Jining’s GDP increased by 5.8% to RMB586.7 billion in 2024, and the Jining government’s budgetary revenue increased by 4.5% to RMB49.6 billion.
The Stable Outlook reflects our expectation that JCDCH’s strategic importance would remain intact while the Jining government will continue to ensure JCDCH’s stable operation.
Lianhe Global has also upgraded the global scale Long-term Issuance Credit Rating of the senior unsecured bonds issued by JCDCH at the same time to ‘BBB+’ from ‘BBB’. A full list of upgraded issuance rating is included in this report.