Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘BBB+’ global scale Long-term Issuer Credit Rating with Stable Outlook to Longkou Gangcheng Investment Development and Construction Group Co., Ltd. (“LKGI” or “the company”)
The Issuer Credit Rating reflects a high possibility that the People’s Government of Longkou City (“Longkou government”) would provide very strong support to LKGI if needed, in light of its full ownership of LKGI, LKGI’s strategic importance as sole local investment and development company (“LIDC”) responsible shantytown renovation and an important infrastructure development entity in Longkou City (“Longkou”), and the linkage between the Longkou government and LKGI, including appointment of the senior management, strategic alignment, supervision of major investment and financing plan decisions and ongoing operational and financial support. In addition, the Longkou government may face significant negative impact on its reputation and financing activities if LKGI encounters any operational and financial difficulties.
The Stable Outlook reflects our expectation that LKGI’s strategic importance would remain intact while the Longkou government will continue to ensure LKGI’s stable operation.