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