Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘BBB’ global scale Long-term Issuer Credit Rating with Stable Outlook to Yantai Zhengyuan Investment Holding Group Co., Ltd (“YZIHG” or “the company”).
The Issuer Credit Rating reflects a high possibility that the People’s Government of Laishan District (“Laishan government”) would provide very strong support to YZIHG if needed, in light of its full ownership of YZIHG, YZIHG’s strategic importance as the most important local investment and development company (“LIDC”) that is responsible for infrastructure construction and state-owned asset operation in Laishan, and the linkage between the Laishan government and YZIHG, including appointment of the senior management, strategic alignment, supervision of major investment and financing plan decisions and ongoing operational and financial support. In addition, the Laishan government may face significant negative impact on its reputation and financing activities if YZIHG encounters any operational and financial difficulties.
The Stable Outlook reflects our expectation that YZIHG’s strategic importance would remain intact while the Laishan government will continue to ensure YZIHG’s stable operation.