Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘BBB-’ global scale Long-term Issuer Credit Rating with Stable Outlook to Shanghai Zhuanghang Economic Development Co., Ltd. (“SZED” or “the company”)
The Issuer Credit Rating reflects a high possibility that the People’s Government of Fengxian District of Shanghai City (“Fengxian government”) would provide moderately strong support to SZED if needed, in light of its indirect full ownership of SZED, SZED’s strategic importance as an important local investment and development company (“LIDC”) responsible for infrastructure construction in Zhuanghang Town (“Zhuanghang”) of Fengxian District (“Fengxian”), and the linkage between the Fengxian government and SZED, including appointment and supervision of the senior management, strategic alignment, major investment and financing plan decisions and ongoing government support, etc. In addition, the Fengxian government may face negative impact on its reputation and financing activities if SZED encounters any operational and financial difficulties.
The Stable Outlook reflects our expectation that SZED’s strategic importance would remain intact while the Fengxian government will continue to ensure SZED’s stable operation.