S&P Global Ratings downgraded the long-term issuer credit rating of Guangzhou Industrial Investment Fund Management Co. Ltd. to BBB from BBB+, with a stable outlook.

The rating agency said Dec. 17 that it also affirmed the company's A-2 short-term issuer credit rating.

The rating downgrade reflects the belief that the company's linkage with the Guangzhou municipal government has weakened. Ratings believes the company's lower-tier government ownership structure decreases the likelihood of extraordinary government support.

Meanwhile, the stable outlook reflects the agency's view that Guangzhou Industrial Investment Fund Management will remain a government-related entity with a very high likelihood of support from the Guangzhou government.

The rating agency also expects the company to maintain intermediate leverage over the next 12 to 24 months.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings.The original S&P Global Ratings document referred to in this news brief can be found here.