Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘BBB-’ global scale Long-term Issuer Credit Rating with Stable Outlook to Yutai County Kangquan Agricultural Development Co., Ltd. (“YCKAD” or “the company”)
The Issuer Credit Rating reflects a high possibility that the People’s Government of Yutai, Jining City (“Yutai government”) would provide very strong support to YCKAD if needed, in light of its indirect full ownership of YCKAD, YCKAD’s strategic importance as the key entity for market-oriented operations and agricultural development in Yutai County, Jining City (“Yutai”) and the linkage between the local government and YCKAD, including appointment of the senior management, strategic alignment, supervision of major investment and financing decisions and ongoing operational and financial support. In addition, the Yutai government may face significant negative impact on its reputation and financing activities if YCKAD encounters any operational and financial difficulties.
The Stable Outlook reflects our expectation that YCKAD’s strategic importance would remain intact while the Yutai government will continue to ensure YCKAD’s stable operation.