Lianhe Ratings Global Limited (“Lianhe Global”) has upgraded the global scale Long-term Issuer Credit Rating of Shandong Mingshui Guokai Development Group Co., Ltd. (“SMGD” or “the company”) to ‘BBB’ from ‘BBB-’. The Outlook is Stable.
The Issuer Credit Rating upgrade reflects the company’s strengthened strategic importance in Jinan’s Zhangqiu District. The company is the most important development and operation platform focusing on promoting the industrial development of Mingshui Economic and Technological Development Zone (“Mingshui EDZ”), a national economic development zone and the core of Zhangqiu’s economic growth.
We believe this continues to reflect a high possibility that the People’s Government of Zhangqiu District (“the Zhangqiu government”) would provide strong support to SMGD if needed, mainly considers the management committee of Mingshui Economic and Technological Development Zone’s (“the management committee”) (the de facto local government of Mingshui EDZ) majority ownership of SMGD, SMGD’s strategic importance in Zhangqiu District, 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.