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