Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘BBB’ global scale Long-term Issuer Credit Rating with Stable Outlook to Laizhou Finance Investment Co., Ltd. (“LFI” or “the company”)
The Issuer Credit Rating reflects a high possibility that the People’s Government of Laizhou City, Yantai City (“Laizhou government”) would provide very strong support to LFI if needed, in light of its direct full ownership of LFI, LFI’s strategic importance as the sole local investment and development company (“LIDC”) that is responsible for infrastructure construction and state-owned asset operation in Laizhou City, Yantai City (“Laizhou”), and the linkage between the Laizhou government and LFI, 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 Laizhou government may face significant negative impact on its reputation and financing activities if LFI encounters any operational and financial difficulties.
The Stable Outlook reflects our expectation that LFI’s strategic importance would remain intact while the Laizhou government will continue to ensure LFI’s stable operation.