Fitch Rates Shanghai Lingang's Proposed CNY Bonds 'A-'

Fitch Ratings has assigned China-based Shanghai Lingang Economic Development (Group) Co., Ltd 's (Shanghai Lingang, A-/Negative) proposed Chinese yuan senior unsecured offshore bonds a rating of 'A-'.

The proposed bonds are to be issued by Shanghai Lingang's wholly owned subsidiary, LINGANG OASIS INC, and will be unconditionally and irrevocably guaranteed by Shanghai Lingang.

The proceeds of the proposed bonds will be used for financing eligible social projects in accordance with the company's Sustainable Financing Framework.

KEY RATING DRIVERS

The offshore guaranteed bonds are rated at the same level as Shanghai Lingang's Issuer Default Rating (IDR) as they constitute direct, unsubordinated, unconditional and unsecured obligations of Shanghai Lingang, and rank at least pari passu with all of Shanghai Lingang's present and future unsecured and unsubordinated obligations. The direct guarantee structure transfers the ultimate responsibility of payment to Shanghai Lingang.

Derivation Summary

Not applicable.

Issuer Profile

Not applicable.

Rating Sensitivities

Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade

A downgrade of Shanghai Lingang's rating would lead to similar action on its yuan-denominated notes.

Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade

An upgrade of Shanghai Lingang's rating would lead to similar action on its yuan-denominated notes.

ESG Considerations

The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. For more information on Fitch's ESG Relevance Scores, visit https://www.fitchratings.com/topics/esg/products#esg-relevance-scores.

References for Substantially Material Source Cited as Key Driver Rating

The principal sources of information used in the analysis are described in the Applicable Criteria.

RATING ACTIONS

Entity / Debt

Rating

LINGANG OASIS INC

senior unsecured

LT

A-

New Rating

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VIEW ADDITIONAL RATING DETAILS

Additional information is available on www.fitchratings.com

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