Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘BBB’ global scale Long-term Issuer Credit Rating with Stable Outlook to Rizhao City Donggang District Water Group Co., Ltd. (“RCDDW” or “the company”)
The Issuer Credit Rating reflects a high possibility that the People’s Government of Donggang District, Rizhao City (“Donggang government”) would provide strong support to RCDDW if needed, in light of its indirect full ownership of RCDDW, RCDDW’s strategic importance as the key entity for developing and operating water affairs and water conservancy projects in Donggang District, Rizhao City (“Donggang”) and the linkage between the local government and RCDDW, including appointment of the senior management, strategic alignment, supervision of major investment and financing decisions and ongoing operational and financial support. In addition, the Donggang government may face significant negative impact on its reputation and financing activities if RCDDW encounters any operational and financial difficulties.
The Stable Outlook reflects our expectation that RCDDW’s strategic importance would remain intact while the Donggang government will continue to ensure RCDDW’s stable operation.