Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘BBB’ global scale Long-term Issuer Credit Rating with Stable Outlook to Zouping Financial Development Group Co., Ltd. (“ZFDG” or “the company”)
The Issuer Credit Rating reflects a high possibility that the People’s Government of Zouping City, Binzhou City (“Zouping government”) would provide very strong support to ZFDG if needed, in light of its direct full ownership of ZFDG, ZFDG’s strategic importance as the sole local investment and development company (“LIDC”) that is responsible for infrastructure construction and state-owned asset operation in Zouping City, Binzhou City (“Zouping”), and the linkage between the Zouping government and ZFDG, including appointment and supervision of the senior management, strategic alignment, major investment and financing plan decisions and ongoing operational and financial support. In addition, the Zouping government may face significant negative impact on its reputation and financing activities if ZFDG encounters any operational and financial difficulties.
The Stable Outlook reflects our expectation that ZFDG’s strategic importance would remain intact while the Zouping government will continue to ensure ZFDG’s stable operation.