Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘BBB’ global scale Long-term Issuer Credit Rating with Stable Outlook to Tengzhou Xinhua Investment Group Co., Ltd. (“TZXH” or “the company”)
The Issuer Credit Rating reflects a high possibility that the People’s Government of Tengzhou City (“Tengzhou government”) would provide strong support to TZXH if needed. This mainly considers the Tengzhou government’s majority ownership of TZXH, TZXH’s strategic importance as the most important local investment and development company (“LIDC”) responsible for affordable housing development and infrastructure construction in Tengzhou City (“Tengzhou”), and the strong linkage between the Tengzhou government and TZXH, including the appointment of senior management, strategic alignment, supervision of major investment and financing decisions and ongoing operational and financial support. In addition, the Tengzhou government may face significant negative impact on its reputation and financing activities if TZXH encounters any operational and financial difficulties.
The Stable Outlook reflects our expectation that TZXH’s strategic importance would remain intact while the Tengzhou government will continue to ensure TZXH’s stable operation.