Lianhe Ratings Global Limited (“Lianhe Global”) has affirmed ‘A’ global scale Long-term Issuer Credit Rating of Shuifa Group Co., Ltd. (“Shuifa” or “the company”); Issuer Rating Outlook Stable.
The Issuer Credit Rating reflects a high possibility that the People’s Government of Shandong Province (“Shandong government”) would provide moderately strong support to Shuifa if needed, in light of its indirect full ownership of Shuifa, Shuifa’s strategic position as the sole provincial level, and the major water supply and water-related project development platform in Shandong Province (“Shandong”) and the strong linkage between the Shandong government and Shuifa including management supervision, strategic alignment, and ongoing operational and financial support. In addition, the Shandong government may face negative impact on its reputation and business and financing activities should Shuifa encounter any operational or financial difficulties.
The Stable Outlook reflects our expectation that Shuifa’s strategic importance would remain intact while the Shandong government will continue to ensure Shuifa’s stable operation.