Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘BBB’ global scale Long-term Issuer Credit Rating with Stable Outlook to Shandong Yihe Holding Group Co., Ltd. (“SYHG” or “the company”)
The Issuer Credit Rating reflects a high possibility that the People’s Government of Linyi City (“Linyi government”) would provide moderately strong support to SYHG if needed, in light of its full ownership of SYHG through the Management Committee of Yihe New District (“Yihe ND MC”), the de facto local government of Yihe New District (“Yihe ND”), SYHG’s strategic importance as the most important local investment and development company (“LIDC”) that is responsible for development and operation in Yihe ND, and the linkage between the Yihe ND MC and SYHG, including appointment of the senior management, strategic alignment, supervision of major investment and financing plan decisions and ongoing operational and financial support. In addition, the Linyi government may face negative impact on its reputation and financing activities if SYHG encounters any operational and financial difficulties.
The Stable Outlook reflects our expectation that SYHG’s strategic importance would remain intact while the Linyi government will continue to ensure SYHG’s stable operation.