Research Update: Qingdao Conson Development Outlook Revised To Stable On Qindao's Stabilizing Creditworthiness; 'BBB' Rating Affirmed

We believe the credit profile of the Qingdao municipal government will stabilize over the next 12-24 months. This is due, in our view, to likely higher central government support to moderate revenue and expenditure imbalances of Chinese local governments with direct fiscal ties with the central government, including Qingdao. We continue to see an extremely high likelihood of extraordinary government support to QCD from the Qingdao municipal government. We are therefore revising our outlook on QCD to stable from negative. At the same time, we are affirming our 'BBB' long-term issuer credit rating on QCD and issue rating on the company's outstanding guaranteed notes. On Nov. 26, 2018, S&P Global Ratings revised its outlook on Qingdao Conson Development (Group) Co.

...+ We believe the credit profile of the Qingdao municipal government will stabilize over the next 12-24 months. This is due, in our view, to likely higher central government support to moderate revenue and expenditure imbalances of Chinese local governments with direct fiscal ties with the central government, including Qingdao. + We continue to see an extremely high likelihood of extraordinary government support to QCD from the Qingdao municipal government. + We are therefore revising our outlook on QCD to stable from negative. At the same time, we are affirming our '###' long-term issuer credit rating on QCD and issue rating on the company's outstanding guaranteed notes....

Research Update