Lianhe Ratings Global Limited (“Lianhe Global”) has affirmed ‘BBB+’ global scale Long-term Issuer and Issuance Credit Rating of Qingdao Jiaozhou Bay Development Group Co., Ltd. (“JZBD” or “the company”); Issuer Rating Outlook Stable
The Issuer Credit Rating reflects a high possibility that the Jiaozhou People’s Government (“the Jiaozhou government”) would provide strong support to JZBD if needed, in light of its indirectly full ownership of JZBD, JZBD’s strategic importance as an important local investment and development company (“LIDC”) responsible for infrastructure construction and primary land development in Qingdao’s Jiaozhou (“Jiaozhou”), and the linkage between the Jiaozhou government and JZBD, including the appointment of the senior management, strategic alignment, supervision of major financing plan and investment decisions and ongoing operational and financial support. In addition, the Jiaozhou government may face significant negative impact on its reputation and financing activities if JZBD encounters any operational and financial difficulties.
Lianhe Global has also affirmed ‘BBB+’ global scale Long-term Issuance Credit Rating of senior unsecured CNY Bonds issued by JZBD at the same time. A full list of affirmed issuance rating is included in this report.
The Stable Outlook reflects our expectation that JZBD’s strategic importance would remain intact while the local government will continue to ensure JZBD’s stable operation.