Lianhe Ratings Global Limited (“Lianhe Global”) has affirmed ‘A’ global scale Long-term Issuer and Issuance Credit Rating of Qingdao City Construction Investment (Group) Limited (“QCCI”); Issuer Rating Outlook Revised to Positive
The Issuer Rating reflects a high possibility that the Qingdao Municipal Government (“Qingdao government”) would provide strong support to QCCI if needed, in light of the Qingdao government’s full ownership of QCCI, the high strategic importance of QCCI to Qingdao and the strong linkage between the Qingdao government and QCCI, including appointment and supervision of the senior management, strategic alignment, major investment and financing plan decisions, and ongoing government support. In addition, the Qingdao government may face significant negative impact on its reputation and financing activities should QCCI encounter any operational or financial difficulties.
Lianhe Global has also affirmed ‘A’ global scale Long-term Issuance Credit Rating to the senior unsecured USD bonds issued by QCCI’s wholly-owned subsidiary Hongkong International (Qingdao) Company Limited (“HKIQD”) at the same time. QCCI shows its strong willingness to support HKIQD in meeting its debt obligations by offering a keepwell deed, a deed of equity interest purchase undertaking and an irrevocable standby facility agreement. A full list of affirmed issuance rating is included in this report.
The Positive Outlook reflects the company’s increasing strategic importance in Qingdao and linkage with the Qingdao government with the role as Qingdao’s important urban comprehensive development and operating entity, our internal assessment on the Qingdao government, and the expectation that it will continue to ensure QCCI’s stable operation.