Lianhe Global has assigned ‘BBB’ global scale Long-term Issuer Credit Rating with Stable Outlook to Yangzhou Jianghuai Construction Development Co., Ltd. (“YJCD” or “the company”)
The Issuer Credit Rating reflects a high possibility that the people’s government of Jiangdu District (“the Jiangdu government”) would provide strong support to YJCD if needed. This mainly considers the Jiangdu government’s 100% ownership of YJCD, YJCD’s strategic position as a flagship LGFV within Jiangdu District, as well as the strong linkage between the Jiangdu government and YJCD, including management supervision, strategic alignment, and ongoing operational and financial support. In addition, the Jiangdu government may face significant negative impact on its reputation and financing activities should YJCD encounter any operational or financial difficulties.
The Stable Outlook reflects our expectation that YJCD’s strategic importance would remain intact while the Jiangdu government will continue to ensure YJCD’s stable operation.