Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘BBB’ global scale Long-term Issuer Credit Rating with Stable Outlook to Qingdao Development Zone Investment and Construction Group Co., Ltd. (“QDZIC” or “the company”)
The Issuer Credit Rating reflects a high possibility that the People’s Government of West Coast New Area, Qingdao City (“West Coast New Area government”) would provide strong support to QDZIC if needed, in light of its indirect full ownership of QDZIC, QDZIC’s strategic importance as the key local investment and development company (“LIDC”) responsible for infrastructure construction and state-owned asset management in the West Coast New Area, Qingdao City (“West Coast New Area”), especially in the Qingdao Economic and Technological Development Zone (“Qingdao EDZ”), and the linkage between the West Coast New Area government and QDZIC, including management appointments, strategic alignment, supervision of major investment and financing plans and ongoing operational and financial support. In addition, the West Coast New Area government may face significant negative impact on its reputation and financing activities if QDZIC encounters any operational and financial difficulties.
The Stable Outlook reflects our expectation that QDZIC’s strategic importance would remain intact while the West Coast New Area government will continue to ensure QDZIC’s stable operation.