Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘BBB-’ global scale Long-term Issuer Credit Rating with Stable Outlook to Shandong Xingyu Investment and Construction Group Co., Ltd. (“SXICG” or “the company”)
The Issuer Credit Rating reflects a high possibility that the People’s Government of Yutai County, Jining City (“Yutai government”) would provide very strong support to SXICG if needed, in light of its full ownership of SXICG, SXICG’s strategic importance as the sole local investment and development company (“LIDC”) that is responsible for infrastructure construction and land development in Yutai County, Jining City (“Yutai”), and the linkage between the Yutai government and SXICG, 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 Yutai government may face significant negative impact on its reputation and financing activities if SXICG encounters any operational and financial difficulties.
The Stable Outlook reflects our expectation that SXICG’s strategic importance would remain intact while the Yutai government will continue to ensure SXICG’s stable operation.