Lianhe Ratings Global Limited (“Lianhe Global”) has affirmed ‘BBB-’ global scale Long-term Issuer Credit Rating of Zhangzhou Yuanshan Development Co., Ltd. (“ZZYD” or “the company”); Issuer Rating Outlook Stable
The Issuer Credit Rating reflects a high possibility that the Zhangzhou Municipal People’s government (“the Zhangzhou government”) would provide moderately strong support to ZZYD if needed. This mainly considers the Management Committee of Zhangzhou High-Tech District’s (“ZHTD MC”) (a local office of the Zhangzhou government and the de facto local government of Zhangzhou High-Tech District (“ZHTD”))’s indirect full ownership of ZZYD, ZZYD’s strategic importance as an important local investment and development company (“LIDC”) responsible for infrastructure construction in ZHTD, which is a national high-tech industrial development zone and one of the four key driver zones of Zhangzhou’s economic development, and the linkage between ZHTD MC and ZZYD, 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 Zhangzhou government may face negative impact on its reputation and financing activities if ZZYD encounters any operational and financial difficulties.
The Stable Outlook reflects our expectation that ZZYD’s strategic importance would remain intact while the local government will continue to ensure ZZYD’s stable operation.