Chongqing Fengdu Culture Tourism 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 Chongqing Fengdu Culture Tourism Group Co., Ltd. (“CFCT” or “the company”)

The Issuer Credit Rating reflects a high possibility that the People’s Government of Fengdu County (“the Fengdu government”) would provide strong support to CFCT if needed. This mainly considers the Fengdu government’s full ownership of CFCT, CFCT’s strategic importance as an important local investment and development company (“LIDC”) responsible for tourism infrastructure construction and operation in Fengdu County (“Fengdu”), and the linkage between the Fengdu government and CFCT, including the appointment of senior management, strategic alignment, supervision of major investment and financing decisions and ongoing operational and financial support. In addition, the Fengdu government may face significant negative impact on its reputation and financing activities if CFCT encounters any operational and financial difficulties.

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