Dongyang State-owned Assets Investment 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 Dongyang State-owned Assets Investment Co., Ltd.  (“DSAI” or “the company”)

The Issuer Credit Rating reflects a high possibility that the People’s Government of Dongyang City (“Dongyang government”) would provide strong support to DSAI if needed, in light of its indirect full ownership of DSAI, DSAI’s strategic importance as the important state-owned entity for infrastructure construction and land development, state-owned capital Investment,  as well as settlement house construction in Dongyang City (“Dongyang”), and the linkage between the Dongyang government and DSAI, including control and supervision over the management, strategic alignment and ongoing operational and financial support. In addition, the Dongyang government may face significant negative impacts on its reputation, business and financing activities if DSAI encounters any operational and financial difficulties.

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