Chuzhou Nanqiao Urban Investment 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 Chuzhou Nanqiao Urban Investment Holding Group Co., Ltd. (“CNUI” or “the company”)

The Issuer Credit Rating reflects a high possibility that the People’s Government of Nanqiao District, Chuzhou City (“the Nanqiao government”) would provide very strong support to CNUI if needed, in light of its full ownership of CNUI, CNUI’s strategic importance as the sole construction and development platform in Chuzhou’s Nanqiao District (“Nanqiao”), and the linkage between the Nanqiao government and CNUI, 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 Nanqiao government may face significant negative impact on its reputation and financing activities if CNUI encounters any operational and financial difficulties.

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