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