Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘A-’ global scale Long-term Issuer Credit Rating with Stable Outlook to Zhejiang Changsanhe Holding Group Co., Ltd. (“ZCHG” or “the company”)
The Issuer Credit Rating reflects a high possibility that the People’s Government of Huzhou City, Zhejiang Province (“Huzhou government”) would provide strong support to ZCHG if needed, in light of its indirect majority ownership of ZCHG, ZCHG’s strategic importance as the key local investment and development company (“LIDC”) that is responsible for infrastructure construction and industry cultivation in Huzhou City, Zhejiang Province (“Huzhou”), especially in Yangtze River Delta (Huzhou) Industrial Cooperation Zone (“Changhe Area”), and the linkage between the Huzhou government and ZCHG, including appointment and supervision of the senior management, strategic alignment, major investment and financing plan decisions and ongoing operational and financial support. In addition, the Huzhou government may face significant negative impact on its reputation and financing activities if ZCHG encounters any operational and financial difficulties.
The Stable Outlook reflects our expectation that ZCHG’s strategic importance would remain intact while the Huzhou government will continue to ensure ZCHG’s stable operation.