Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘BBB’ global scale Long-term Issuer Credit Rating with Stable Outlook to Zoucheng Hengtai Holding Group Co., Ltd. (“ZHHG” or “the company”)
The Issuer Credit Rating reflects a high possibility that the Zoucheng State-owned Asset Supervision and Administration Bureau (“Zoucheng SASAB”) would provide strong support to ZHHG if needed, in light of its full ownership of ZHHG, ZHHG’s strategic importance as the key local investment and development company (“LIDC”) that is responsible for affordable housing construction in Zoucheng City, Jining City (“Zoucheng”), and the linkage between the Zoucheng SASAB and ZHHG. In addition, the region may face significant negative impact on its reputation and financing activities if ZHHG encounters any operational and financial difficulties.
The Stable Outlook reflects our expectation that ZHHG’s strategic importance would remain intact while the Zoucheng government will continue to ensure ZHHG’s stable operation.