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