Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘BBB-’ global scale Long-term Issuer Credit Rating with Stable Outlook to Jining Xiangcheng Investment Group Co., Ltd. (“JXIG” or “the company”)
The Issuer Credit Rating reflects a high possibility that Jining Municipal People’s Government (“the Jining government”) would provide moderately strong support to JXIG if needed. This mainly considers the Jining Economic and Technological Development Zone Management Committee’s (“the management committee”) (a local office of the Jining government and the de facto local government of Jining Economic and Technological Development Zone (“Jining EDZ”)) majority ownership of JXIG, JXIG’s strategic importance as an important local investment and development company (“LIDC”) responsible for infrastructure construction, as well as the development and operation of industrial parks in Jining EDZ, and the linkage between the local government and JXIG, 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 Jining government may face negative impact on its reputation and financing activities if JXIG encounters any operational and financial difficulties.
The Stable Outlook reflects our expectation that JXIG’s strategic importance would remain intact while the Jining government will continue to ensure JXIG’s stable operation.