Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘BBB+’ global scale Long-term Issuer Credit Rating with Stable Outlook to Longkou Urban Rural Construction Investment Development Co., Ltd. (“LURC” or “the company”)
The Issuer Credit Rating reflects a high possibility that the Longkou City People’s Government (“Longkou government”) would provide very strong support to LURC if needed. This mainly considers the Longkou government’s indirect full ownership of LURC, LURC’s strategic importance as a major local investment and development company (“LIDC”) responsible for infrastructure construction and state-owned asset management in Longkou City, Yantai City (“Longkou”). In addition, the linkage between the Longkou government and LURC is strong, including management supervision, strategic alignment and ongoing operational and financial support. Moreover, the Longkou government may face significant negative impact on its reputation and financing activities if LURC encounters any operational and financial difficulties.
Longkou is a county-level city under Yantai’s jurisdiction. In 2024, Longkou’s GDP grew steadily by 8.7% to RMB164.3 billion.
The Stable Outlook reflects our expectation that LURC’s strategic importance would remain intact while the Longkou government will continue to ensure LURC’s stable operation.