Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘BBB-’ global scale Long-term Issuer Credit Rating with Stable Outlook to Shandong Mingshui Guokai Development Group Co., Ltd. (“SMGD” or “the company”)
The Issuer Credit Rating reflects a high possibility that the People’s Government of Zhangqiu district (“the Zhangqiu government”) would provide strong support to SMGD if needed. This mainly considers the management committee of Mingshui Economic and Technological Development Zone’s (“the management committee”) (the de facto local government of Mingshui Economic and Technological Development Zone (“Mingshui EDZ”)) majority ownership of SMGD, SMGD’s strategic importance as an important local investment and development company (“LIDC”) responsible for the development and operation of Mingshui EDZ in Jinan’s Zhangqiu District (“Zhangqiu”), and the linkage between the local government and SMGD, including the appointment of senior management, strategic alignment, supervision of major investment and financing decisions and ongoing operational and financial support. In addition, the Zhangqiu government may face significant negative impact on its reputation and financing activities if SMGD encounters any operational and financial difficulties.
The Stable Outlook reflects our expectation that SMGD’s strategic importance would remain intact while the Zhangqiu government will continue to ensure SMGD’s stable operation.