Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘A’ global scale Long-term Issuer Credit Rating to Qingdao Haifa State-owned Capital Investment and Operation Group Co., Ltd. (“QHSCI” or “the company”). The Outlook is Positive.
The Issuer Credit Rating reflects a high possibility that the People’s Government of Qingdao City (“Qingdao government”) would provide strong support to QHSCI if needed, in light of its direct full ownership of QHSCI, QHSCI’s strategic importance as an important local investment and development company (“LIDC”) responsible for infrastructure construction and state-owned asset operation in Qingdao, especially in the West Coast New Area (“WCN Area”) and the linkage between the Qingdao government and QHSCI, including appointment of the senior management, strategic alignment, supervision of major investment and financing plans and ongoing operational and financial support. In addition, the Qingdao government may face significant negative impact on its reputation and financing activities if QHSCI encounters any operational and financial difficulties.
The Positive Outlook reflects our expectation that QHSCI’s strategic importance would be strengthened given its increasing involvement in the infrastructure construction and land development in Qingdao Area of the China (Shandong) Pilot Free Trade Zone (“Qingdao FTZ”), while the Qingdao government will continue to ensure QHSCI’s stable operation. In addition, we expect the company to play a more important role in promoting local industrial development, as it is proactively developing industrial parks and investing in leading industries, such as film and television culture, life and health and high-end manufacturing within the region.