Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘BBB’ global scale Long-term Issuer Credit Rating with Stable Outlook to Sanya Yazhou Bay Technology City Holding Group Co., Ltd. (“STCH” or “the company”)
The Issuer Credit Rating reflects a high possibility that the Sanya Municipal People’s Government (“the Sanya government”) would provide strong support to STCH if needed. This mainly considers the Sanya Yazhou Bay Science and Technology City Authority’s (“YZBSTC Authority”, a specially established institution of the Sanya government) full ownership of STCH, STCH’s strategic importance as the most important local investment and development company (“LIDC”) responsible for infrastructure construction and state-owned assets operation in Yazhou Bay Science and Technology City (“YZBSTC”) of Sanya, and the linkage between the local government and STCH, including appointment and supervision of the senior management, strategic alignment, major investment and financing plan decisions and ongoing operational and financial support. In addition, the Sanya government may face significant negative impact on its reputation and financing activities if STCH encounters any operational and financial difficulties.
The Stable Outlook reflects our expectation that STCH’s strategic importance would remain intact while the Sanya government will continue to ensure STCH’s stable operation.