Zhengzhou Urban Construction Investment Group Co., Ltd. (Surveillance Report)

Lianhe Ratings Global Limited (“Lianhe Global”) has affirmed ‘A-’ global scale Long-term Issuer and Issuance Credit Rating of Zhengzhou Urban Construction Investment Group Co., Ltd. (“ZZC”). Issuer Rating Outlook Stable.

The Issuer Credit Rating reflects a high possibility that Henan’s Zhengzhou municipal government would provide strong support to ZZC if needed. This mainly considers the Zhengzhou municipal government’s full ownership of ZZC, the high strategic importance of ZZC to Zhengzhou in the municipal infrastructure construction and maintenance, and the strong linkage between the Zhengzhou municipal government and ZZC, including management supervision, strategic alignment, and ongoing operational and financial support. In addition, the Zhengzhou municipal government may face significant negative impact on its reputation and business and financing activities should ZZC encounter any operational or financial difficulties.

The Stable Outlook reflects our expectation that ZZC’s strategic importance would remain intact while the Zhengzhou municipal government will continue to ensure ZZC’s stable operation.