The Issuer Rating reflects the likely strong support PARE would receive from its parent Ping An Insurance (Group) Company of China, Ltd. (“PAI Group”) to ensure its viability, considering PARE’s strategic role as the group’s key asset management arm, high integration and linkage. PARE’s rating is constrained by its pressured investment return and liquidity as well as high asset concentration and potential impairment amid the property market downturn.
At the same time, Lianhe global has assigned ‘BBB’ global scale Long-term Issuance Credit Ratings to senior unsecured USD Notes (“the USD notes”) issued by PARE’s wholly-owned subsidiaries, Pingan Real Estate Capital Limited and Fuqing Investment Management Limited. PARE shows its strong willingness to support its subsidiaries in meeting their debt obligations by offering the keepwell deed and liquidity support undertaking. A full list of assigned issuance ratings is included in this press release.
The Stable Outlook reflects our expectation that PARE would maintain its strategic importance in PAI Group, while PAI Group will continue to support PARE’s stable operation.