Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘BBB-’ global scale Long-term Issuer Credit Rating with Stable Outlook to Rizhao Luda Municipal Landscape Engineering Co., Ltd. (“RLML” 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 RLML if needed, in light of its indirect full ownership of RLML, RLML’s strategic importance as the key entity for municipal engineering and landscape greening projects in Donggang District, Rizhao City (“Donggang”) and the linkage between the local government and RLML, 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 RLML encounters any operational and financial difficulties.
The Stable Outlook reflects our expectation that RLML’s strategic importance would remain intact while the Donggang government will continue to ensure RLML’s stable operation.