Chengdu Xinjin City Industry Development Group Co., Ltd. (Surveillance Report)

Lianhe Ratings Global Limited (“Lianhe Global”) has affirmed ‘BBB-’ global scale Long-term Issuer Credit Rating of Chengdu Xinjin City Industry Development Group Company Ltd. (“CXCID”); Issuer Rating Outlook Stable.

The Issuer Credit Rating reflects a high possibility that the People’s Government of Xinjin District (“Xinjin government”) would provide strong support to CXCID if needed, in light of its full ownership of CXCID, CXCID’s strategic position as the major LIDC participating in infrastructure construction and state-owned asset operation in Xinjin District (“Xinjin”) of Chengdu City, as well as the strong linkage between the Xinjin government and CXCID, including control of board of directors, management supervision, strategic alignment and ongoing operational and financial support. In addition, the Xinjin government may face significant negative impact on its reputation, business and financing activities should CXCID encounter any operational or financial difficulties.

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