Bazhou Development Holding Group Co., Ltd. (Initial Issuer Report)

Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘BBB-’ global scale Long-term Issuer Credit Rating with Stable Outlook to Bazhou Development Holding Group Co., Ltd. (“BDHG” or “the company”)

The Issuer Credit Rating reflects a high possibility that the People’s Government of Bazhou City, Langfang City (“Bazhou government”) would provide very strong support to BDHG if needed, in light of its full ownership of BDHG, BDHG’s strategic importance as the flagship local investment and development company (“LIDC”) that is responsible for infrastructure construction and operation of state-owned assets in Bazhou City, Langfang City (“Bazhou”), and the linkage between the Bazhou government and BDHG, including appointment and supervision of the senior management, strategic alignment, major investment and financing plan decisions and ongoing operational and financial support. In addition, the Bazhou government may face significant negative impact on its reputation and financing activities if BDHG encounters any operational and financial difficulties.

The Stable Outlook reflects our expectation that BDHG’s strategic importance would remain intact while the Bazhou government will continue to ensure BDHG’s stable operation.