Lianhe Ratings Global Limited (“Lianhe Global”) has affirmed ‘A-’ global scale Long-term Issuer Credit Rating of Yunnan YEIG Co., Ltd. (“YEIG” or “the company”); Issuer Rating Outlook revised to Positive.
The Issuer Credit Rating reflects a high possibility that the People’s Government of Yunnan Province (“Yunnan government”) would provide strong support to YEIG if needed, in light of its majority ownership of YEIG, YEIG’s strategic position as the most important state-owned energy entity for the investment and development of the green energy industry, and the integration of energy resources of Yunnan, as well as the strong linkage between the Yunnan government and YEIG, including management supervision, strategic alignment, and ongoing operational and financial support. In addition, the Yunnan government may face significant negative impact on its reputation, business and financing activities should YEIG encounter any operational or financial difficulties.
The Positive Outlook reflects our expectation of strengthened support from the Yunnan government considering YEIG’s enhanced strategic importance and stabilized financing environment of the Yunnan Province. We believe that the Yunnan government will continue to ensure YEIG’s stable operation. YEIG’s pivotal role in energy transition and development, coal and lithium sources operations, and industrial development would be further enhanced through substantial policy support and the injection of related projects and capital by the Yunnan government. The financing landscape of Yunnan has witnessed improvements and stabilization with a series of measures by the Yunnan government aiming at mitigating the debt burden and refinancing risks of local LIDCs, along with a decrease in regional credit risk events.