This report does not constitute a rating action. Overview Key strengths Key risks Robust support from controlling shareholder Qingdao municipal government, which has a strong economic base. Highly leveraged, with negative funds from operations (FFO). Toll fee revenue from Qingdao Jiaozhou Bay tunnels, contributes sizable and stable cash flow. Investments in modern marine industry and capital intensive infrastructure could have a long payback period. Strong funding access to capital markets and banks. Qingdao Conson Development (Group) Co. Ltd. (QCD) continues to have an extremely high likelihood of receiving extraordinary support from the Qingdao municipal government if needed, in our view. The company is one of the major local government financing vehicles (LGFVs) of the Qingdao municipal government. It has three
