Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘A’ global scale Long-term Issuer Credit Rating with Stable Outlook to Yancheng Oriental Investment & Development Group Co., Ltd. (“Yancheng Oriental” or “the company”)
The Issuer Credit Rating reflects a high possibility that the Yancheng Municipal People’s Government (“Yancheng government”) would provide very strong support to Yancheng Oriental if needed. This mainly considers the Yancheng government’s direct full ownership of Yancheng Oriental, Yancheng Oriental’s strategic position as a major local investment and development company (“LIDC”) responsible for infrastructure construction, state-owned asset operation and investment in Yancheng, especially in Yancheng Economic and Technological Development Zone (“YETDZ”). In addition, the linkage between the Yancheng government and Yancheng Oriental is strong, including management supervision, strategic alignment and ongoing operational and financial support. Moreover, the Yancheng government may face significant negative impact on its reputation and financing activities if Yancheng Oriental encounters any operational or financial difficulties.
Yancheng is a prefecture-level city of Jiangsu Province. In 2024, Yancheng’s GDP grew by 5.5% to RMB777.9 billion and its budgetary revenue reached RMB49.6 billion. The YETDZ was first established in 1992, and it was approved by the State Council as one of the national economic and technological development zones in 2010.
The Stable Outlook reflects our expectation that Yancheng Oriental’s strategic importance would remain intact while the Yancheng government will continue to ensure Yancheng Oriental’s stable operation.