Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘BBB’ global scale Long-term Issuer Credit Rating with Stable Outlook to Shandong Hejian State-owned Capital Investment Co., Ltd. (“SHSCI” or “the company”).
The Issuer Credit Rating reflects a high possibility that the Heze Municipal People’s Government (“Heze government”) would provide strong support to SHSCI if needed, in light of its full ownership of SHSCI, SHSCI’s strategic position as the major LGFV that is responsible for infrastructure construction, resettlement housing construction and land development in Heze, its important status as the sole state-owned asset operation entity in the region, and the strong linkage between the Heze government and SHSCI, including control and supervision over SHSCI’s management, strategic alignment and ongoing operational and financial support. In addition, the Heze government may face significant negative impact on its reputation, business, and financing activities should SHSCI encounter any operational or financial difficulties.
The Stable Outlook reflects our expectation that SHSCI’s strategic importance would remain intact while the Heze government will continue to ensure SHSCI’s stable operation.