Chengdu Dujiangyan Investment Development Group Co., Ltd. (Surveillance Report)

Lianhe Ratings Global Limited (“Lianhe Global”) has affirmed ‘BBB-’ global scale Long-term Issuer Credit Rating of Chengdu Dujiangyan Investment Development Group Co., Ltd. (“DIDG”); Issuer Rating Outlook Stable.

The Issuer Credit Rating reflects a high possibility that the People’s Government of Dujiangyan City (“Dujiangyan government”) would provide strong support to DIDG if needed, in light of its full ownership of DIDG, the high strategic importance of DIDG to Dujiangyan, and the strong linkage between the Dujiangyan government and DIDG, including control of the board of directors, appointment and supervision of the senior management, strategic alignment, major investment and financing plan decisions and ongoing government support. In addition, the Dujiangyan government may face significant negative impact on its reputation and financing activities should DIDG encounter any operational or financial difficulties.

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