Liangshan State-Owned Investment & Development Co., Ltd. (Initial Issuer Report)

Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘BBB-’ global scale Long-term Issuer Credit Rating to Liangshan State-Owned Investment & Development Co., Ltd. (“LSID”). The Outlook is Stable.

The Issuer Rating reflects a high probability that Sichuan’s Liangshan Yi Autonomous Prefecture (“Liangshan”) would provide strong support to LSID if needed, in light of the Liangshan government’s majority ownership in LSID, the high strategic importance of LSID to Liangshan and the strong linkage between the Liangshan government and LSID, including management supervision and strategic alignment. In addition, the Liangshan government may face significant adverse impact on its reputation, and business and financing activities should LSID encounter any operational or financial difficulties.

Liangshan itself has persistently obtained large transfer payments from the central and provincial governments. We expect transfer payments to continue to support its fiscal expenditure.

The Stable Outlook reflects our expectation that LSID’s strategic importance would remain intact while the Liangshan government will continue to ensure LSID’s stable operation.