Fitch Ratings affirmed Lianyungang Port Group Co., Ltd.’s Long-Term Issuer Default Rating at ‘BBB’ with a Stable Outlook, the agency announced on February 25, 2026. The affirmation extends to the port’s senior unsecured rating and a US dollar note due in 2028 issued by Shanhai (Hong Kong) International Investments Limited.
The rating reflects Fitch’s assessment of Lianyungang Municipality’s creditworthiness, aligning with the agency’s Government-Related Entities Rating Criteria, according to a March 22, 2022 Fitch report. This assessment acknowledges the strong relationship between the port and the municipal government.
Lianyungang Port Holding Group Ltd., indirectly wholly owned by the Lianyungang municipal government, holds approximately 90% of Lianyungang Port Group, with the remaining stake owned by China Development Fund Co. Ltd. The municipal government exercises significant control over the port’s operations, investments, and financial activities, including the appointment and supervision of key management personnel.
Fitch highlighted a “Very Strong” support record from the government, citing consistent subsidies in the form of special-fund support, interest subsidies, tax incentives, and favorable policies. The port anticipates continued funding support for future capital expenditures.
The ‘BBB’ rating also considers Lianyungang Port’s strategic position as a major coastal port in China and its extensive hinterland coverage through a well-developed transportation network. However, Fitch noted competition from other ports and anticipates high leverage for the port in the medium term. The agency’s rating case forecasts a net debt/EBITDA ratio remaining above 15x over the next five years, averaging 15.3x.
A November 28, 2024 Fitch statement indicated that a recent shareholder change involving the transfer of an 89.51% stake did not immediately impact the port’s ratings.
Fitch’s standalone credit profile (SCP) for Lianyungang Port is assessed at ‘b’, factoring in the port’s reliance on short-term debt with corporate-style funding arrangements characterized by loose covenants and bullet maturities.
