Research Update: LGFVs Yangzhou Urban And YETDZ Outlooks Revised To Negative On Weakening Government Financial Capacity; Ratings Affirmed

The Yangzhou municipal government's financial capacity to provide extraordinary support to Yangzhou Urban Construction State-Owned Assets Holding (Group) Co. Ltd. (Yangzhou Urban) and Yangzhou Economic and Technological Development Zone Development Corp. (YETDZ Dev. Corp.) could weaken over the next 24 months. We believe the likelihood of these LGFVs receiving extraordinary support from the city government in distressed scenarios remains unchanged. On April 24, 2020, S&P Global Ratings revised its rating outlooks on Yangzhou Urban and YETDZ Dev. Corp. to negative from stable. At the same time, we affirmed our of 'BBB-' long-term issuer credit rating on Yangzhou Urban and our 'BBB-' long-term issue rating on the company's senior unsecured notes. At the same time, we affirmed our long-term issuer credit

...- The Yangzhou municipal government's financial capacity to provide extraordinary support to Yangzhou Urban Construction State-Owned Assets Holding (Group) Co. Ltd. (Yangzhou Urban) and Yangzhou Economic and Technological Development Zone Development Corp. (YETDZ Dev. Corp.) could weaken over the next 24 months. - We believe the likelihood of these LGFVs receiving extraordinary support from the city government in distressed scenarios remains unchanged. - On April 24, 2020, S&P Global Ratings revised its rating outlooks on Yangzhou Urban and YETDZ Dev. Corp. to negative from stable. At the same time, we affirmed our of '###-' long-term issuer credit rating on Yangzhou Urban and our '###-' long-term issue rating on the company's senior unsecured notes. At the same time, we affirmed our long-term issuer credit rating of '##+' on YETDZ Dev. Corp. - The negative outlooks reflect the increased likelihood that Yangzhou's fiscal position would weaken due to the fallout from the COVID-19 outbreak....

Research Update