Research Update: Yangzhou Economic and Technological Development Zone Development Corp. Outlook Revised To Stable; 'BB+' Rating Affirmed

In our view, Yangzhou City has weathered the COVID-19-related shock well. The local economy is showing resilience and its weakening budgetary metrics are stabilizing. We believe the Yangzhou municipal government's financial capacity to provide extraordinary support to Yangzhou Economic and Technological Development Zone Development Corp. (YETDZ Dev. Corp.) is stabilizing. On May 4, 2021, S&P Global Ratings revised its outlook on YETDZ Dev. Corp. to stable from negative. We also affirmed our 'BB+' long-term issuer credit rating on the company. The stable rating outlook over the next 12 months reflects our view that Yangzhou's continued strong economic development will help the city to implement large transportation projects with a moderate increase in its debt burden. We expect YETDZ Dev. Corp.

...- In our view, Yangzhou City has weathered the COVID-19-related shock well. The local economy is showing resilience and its weakening budgetary metrics are stabilizing. - We believe the Yangzhou municipal government's financial capacity to provide extraordinary support to Yangzhou Economic and Technological Development Zone Development Corp. (YETDZ Dev. Corp.) is stabilizing. - On May 4, 2021, S&P Global Ratings revised its outlook on YETDZ Dev. Corp. to stable from negative. We also affirmed our '##+' long-term issuer credit rating on the company. - The stable rating outlook over the next 12 months reflects our view that Yangzhou's continued strong economic development will help the city to implement large transportation projects with a moderate increase in its debt burden. We expect YETDZ Dev. Corp. to continue to have an extremely high likelihood of receiving extraordinary support from the Yangzhou government in case of financial distress....

Research Update