Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘A-’ global scale Long-term Issuer Credit Rating to Zhengzhou Urban Construction Investment Group Co., Ltd. (“ZZC”). The Outlook is 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 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 government and ZZC, including management supervision, strategic alignment, and ongoing operational and financial support. In addition, the Zhengzhou 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 government will continue to ensure ZZC’s stable operation.