Binzhou Beihai State-owned Assets Operation and Management 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 Binzhou Beihai State-owned Assets Operation and Management Co., Ltd. (“BBSA” or “the company”)

The Issuer Credit Rating reflects a high possibility that the de facto local government of Binzhou Beihai Economic Development Zone (“Beihai EDZ”), the Management Committee of Beihai EDZ (“Beihai EDZ MC”) would provide very strong support to BBSA if needed, in light of its full ownership of BBSA, the strategic importance of BBSA as the most important local investment and development company responsible for infrastructure investment and development in Beihai EDZ, and the linkage between the Beihai EDZ MC and BBSA, including management appointment, supervision over BBSA’s strategic development, major investment and financing plans, strategic alignment and ongoing operational and financial support. In addition, the local government may face significant negative impact on its reputation and financing activities if BBSA encounters any operational and financial difficulties.

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