Research Update: Yangzhou Economic And Technological Development Zone Development Corp. 'BB+' Rating Affirmed; Outlook Negative

We view Yangzhou Economic and Technological Development Zone Development Corp. (YETDZ Dev. Corp.) as the dominant infrastructure platform in Yangzhou's economic and technological development zone (ETDZ). Its increased on-lending to local state-owned enterprises (SOEs) at negative interest margin are primarily driven by the Yangzhou government's goal to uplift infrastructure investments and should receive strong government support. We anticipate the company's likelihood of receiving extraordinary support from the local government to remain extremely high. We are therefore affirming our 'BB+' long-term issuer credit rating on YETDZ Dev. Corp. The negative outlook reflects the increased likelihood that Yangzhou's budgetary position and debt burden will continue to deteriorate. We believe YETDZ Dev. Corp.'s credit profile will continue to benefit from an extremely high

...- We view Yangzhou Economic and Technological Development Zone Development Corp. (YETDZ Dev. Corp.) as the dominant infrastructure platform in Yangzhou's economic and technological development zone (ETDZ). Its increased on-lending to local state-owned enterprises (SOEs) at negative interest margin are primarily driven by the Yangzhou government's goal to uplift infrastructure investments and should receive strong government support. - We anticipate the company's likelihood of receiving extraordinary support from the local government to remain extremely high. - We are therefore affirming our '##+' long-term issuer credit rating on YETDZ Dev. Corp. - The negative outlook reflects the increased likelihood that Yangzhou's budgetary position and debt burden will continue to deteriorate....

Research Update