Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘BBB-’ global scale Long-term Issuer Credit Rating with Stable Outlook to Zoucheng Xingcheng Industrial Development Group Co., Ltd. (“ZXID” or “the company”)
The Issuer Credit Rating reflects a high possibility that the People’s Government of Zoucheng City (“Zoucheng government”) would provide strong support to ZXID if needed, in light of its indirect full ownership of ZXID, ZXID’s strategic importance as an important local investment and development company (“LIDC”) responsible for industrial operation and cultural tourism in Jining’s Zoucheng City, Shandong Province (“Zoucheng”), and the linkage between the Zoucheng government and ZXID, including appointment of the senior management, strategic alignment, supervision of major investment and financing plans and ongoing operational and financial support. In addition, the Zoucheng government may face significant negative impact on its reputation and financing activities if ZXID encounters any operational and financial difficulties.
The Stable Outlook reflects our expectation that ZXID’s strategic importance would remain intact while the Zoucheng government will continue to ensure ZXID’s stable operation.