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