Lianhe Ratings Global Limited (“Lianhe Global”) has upgraded the global scale Long-term Issuer and Issuance Credit Rating of Zhongyuan Asset Management Co., Ltd. (“Zhongyuan AMC”) to ‘A+’ from ‘A-’; Issuer Rating Outlook Stable.
The Issuer Credit Rating upgrade reflects the company’s strengthening strategic importance in Henan Province (“Henan”) and an upgrade in our internal credit assessment on the People’s Government of Henan Province (“the Henan provincial government”). As a key financial company under the Henan provincial government, Zhongyuan AMC is increasingly involved in major provincial strategies of financial institutions consolidation and reconstruction, maintaining the regional financial stability, preventing and resolving local government debt risk, and promoting industrial transformation and upgrade in Henan, following the government’s policies.
We believe the Henan provincial government would provide strong support to Zhongyuan AMC if needed, in light of its majority indirect ownership of Zhongyuan AMC, Zhongyuan AMC’s strategic position as a major financial assets management company (“AMC”) in Henan and the strong linkage between the Henan provincial government and Zhongyuan AMC including management supervision, strategic alignment and ongoing operational and financial support. In addition, the Henan provincial government may face significant negative impact on its reputation and financing activities should Zhongyuan AMC encounter any operational or financial difficulties.
The Stable Outlook reflects our expectation that Zhongyuan AMC’s strategic importance would remain intact while the Henan provincial government will continue to ensure Zhongyuan AMC’s stable operation.
Lianhe Global has also upgraded the global scale Long-term Issuance Credit Rating of the senior unsecured USD notes issued by Zhongyuan AMC’s indirect wholly-owned subsidiary, Zhongyuan Dayu International (BVI) Co., Ltd., which is unconditionally and irrevocably guaranteed by Zhongyuan AMC to ‘A+’ from “A-” at the same time. A full list of Issuance Rating is included in this report.