Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘BBB’ global scale Long-term Issuer Credit Rating with Stable Outlook to Shandong Zhonghai Investment Holding Group Co., Ltd. (“SZIHG” or “the company”)
The Issuer Credit Rating reflects a high possibility that the de facto local government of Binzhou Economic and Technological Development Zone (“Binzhou EDZ”), namely the Management Committee of Binzhou EDZ (“Binzhou EDZ MC”), would provide very strong support to SZIHG if needed, in light of its direct full ownership of SZIHG, SZIHG’s strategic importance as the sole local investment and development company (“LIDC”) that is responsible for infrastructure construction in Binzhou EDZ, Binzhou City (“Binzhou”), and the linkage between the Binzhou EDZ MC and SZIHG, 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 local government may face significant negative impact on its reputation and financing activities if SZIHG encounters any operational and financial difficulties.
The Stable Outlook reflects our expectation that SZIHG’s strategic importance would remain intact while the local government will continue to ensure SZIHG’s stable operation.