Lianhe Global has affirmed ‘A-’ global scale Long-term Issuer and Issuance Credit Rating of Zhongyuan Asset Management Co., Ltd. (“Zhongyuan AMC”); Issuer Rating Outlook Stable.
The Issuer Credit Rating reflects a high possibility that the People’s Government of Henan Province (“the Henan provincial government”) would provide strong support to Zhongyuan Asset Management Co., Ltd. (“Zhongyuan AMC” or “the company”) if needed, in light of its majority ownership of Zhongyuan AMC, Zhongyuan AMC’s strategic position as the major AMC of 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, business 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.