The Issuer Credit Rating reflects a high possibility that the People’s Government of Fenghua District, Ningbo City (“Fenghua government”) would provide very strong support to NMCD if needed, in light of its full ownership of NMCD, NMCD’s strategic importance as an important local investment and development company (“LIDC”) that is responsible for project construction and tourist spot development and construction in Fenghua District (“Fenghua”), Ningbo City (“Ningbo”), and the linkage between the Fenghua government and NMCD, 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 Fenghua government may face significant negative impact on its reputation and financing activities if NMCD encounters any operational and financial difficulties.
Fenghua is a district of Ningbo, Zhejiang province. Fenghua’s GDP grew by 5.1% year-over-year in 2024 and reached RMB110.2 billion. The budgetary revenue of Fenghua reached RMB8.7 billion in 2024.
The Stable Outlook reflects our expectation that NMCD’s strategic importance would remain intact while the Fenghua government will continue to ensure NMCD’s stable operation.
Lianhe Global has also affirmed ‘BBB+’ global scale Long-term Issuance Credit Rating of the senior unsecured RMB bonds issued by NMCD at the same time. A full list of affirmed issuance rating is included in this report.