Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘BBB’ global scale Long-term Issuer Credit Rating with Stable Outlook to Yancheng Dafeng District Xiecheng Industrial Development Co., Ltd. (“YDXID” or “the company”)
The Issuer Credit Rating reflects a high possibility that the People’s Government of Yancheng City (“the Yancheng government”) would provide strong support to YDXID (via the People’s Government of Dafeng District of Yancheng City (“the Dafeng government”)) if needed, in light of the Dafeng government’s indirect 100% ownership, YDXID’s strategic importance as an important local investment and development company (“LIDC”) responsible for urban development and operation in the Dafeng District of Jiangsu’s Yancheng City (“Dafeng District”) and the linkage between the local government and YDXID, including appointment of the senior management, strategic alignment, supervision of major investment and financing decisions and ongoing operational and financial support. In addition, the local government may face significant negative impact on its reputation and financing activities if YDXID encounters any operational and financial difficulties.
The Stable Outlook reflects our expectation that YDXID’s strategic importance would remain intact while the local government will continue to ensure YDXID’s stable operation.