Lianhe Ratings Global Limited (“Lianhe Global”) has upgraded the global scale Long-term Issuer Credit Rating of Taizhou Huaxin Pharmaceutical Investment Co., Ltd. to ‘A-’ from ‘BBB’. The Outlook is Stable.
The Issuer Rating upgrade reflects the strengthened support from the government to THPI and increased strategic importance of THPI in the development of Jiangsu’s Taizhou City (“Taizhou”), as demonstrated by the large cash capital injection in 2023, and its enhanced role in further promoting the development of health industry in Taizhou, one of pillar industries of the city.
We believe there is a high possibility that the Taizhou Municipal People’s Government (“the Taizhou government”) would provide strong support to THPI if needed, in light of its indirect majority ownership of THPI, THPI’s strategic position as the major local investment and development company (“LIDC”) responsible for promoting the development of health industry in Taizhou and the strong linkage between the Taizhou government and THPI including appointment of senior managements, strategic alignment, supervision of major investment and financing plans and ongoing operational and financial support. In addition, the Taizhou government may face significant negative impact on its reputation and financing activities should THPI encounter any operational or financial difficulties.
The Stable Outlook reflects our expectation that THPI’s strategic importance would remain intact while the Taizhou government will continue to ensure THPI’s stable operation.