HONG KONG, 13 September 2024 – Lianhe Ratings Global Limited (“Lianhe Global”), an international credit rating company, says Zhuhai Huafa Group Co., Ltd.’s (“ZHG”, ‘A+/Stable’) proposed tap issuance of its RMB1.9 billion 6.0% senior guaranteed perpetual capital securities (“Perpetual Securities”) will not affect the ‘A+’ rating on the Perpetual Securities.
The proposed tap issuance (by ZHG’s wholly-owned subsidiary Huafa 2024 I Company Limited, which is unconditionally and irrevocably guaranteed by ZHG) will carry the same terms and conditions as the existing Perpetual Securities. The Perpetual Securities are rated at the same level as ZHG’s global scale Long-term Issuer Credit Rating (“LTICR”) of ‘A+’ as they constitute ZHG’s unsecured and unsubordinated obligations.
ZHG’s LTICR reflects a high possibility that the People’s Government of Guangdong Province (“Guangdong government”) and the People’s Government of Zhuhai City, Guangdong Province (“Zhuhai government”) would provide strong support to ZHG if needed, in light of their ownership of ZHG, ZHG’s strategic importance as the key local investment and development company that is responsible for urban construction and operation, industrial and finance development, and state-owned asset management in Zhuhai City, Guangdong Province, and the linkage between the government and ZHG, including supervision of the senior management, strategic alignment, major investment and financing plan decisions and ongoing operational and financial support. In addition, the Guangdong and Zhuhai government may face significant negative impact on its reputation and financing activities if ZHG encounters any operational and financial difficulties.