Lianhe Ratings Global Limited (“Lianhe Global”) has upgraded the global scale Long-term Issuer and Issuance Credit Rating of Yangzhou Economic and Technological Development Zone Development (Group) Co., Ltd. (“YETDG” or “the company”) to ‘A-’ from ‘BBB+’; Issuer Rating Outlook Stable.
The Issuer Credit Rating upgrade reflects an upgrade in our internal credit assessment on Jiangsu’s Yangzhou Municipal People’s Government (“the Yangzhou government”) and the expectation of continuing of a high possibility that the Yangzhou government would provide strong support to YETDG if needed, in light of its indirect full ownership of YETDG, YETDG’s strategic position as an important development and operation entity in Jiangsu’s Yangzhou city (“Yangzhou”), especially in the Yangzhou Economic and Technological Development Zone (“the Development Zone”) and the strong linkage between the Yangzhou government and YETDG, including management supervision, strategic alignment, and ongoing operational and financial support. In addition, the Yangzhou government may face significant negative impact on its reputation and financing activities should YETDG encounter any operational or financial difficulties.
The Stable Outlook reflects our expectation that YETDG’s strategic importance would remain intact while the Yangzhou government will continue to ensure YETDG’s stable operation.