Foshan Nanhai Lianda Investment (Holding) 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 Foshan Nanhai Lianda Investment (Holding) Co., Ltd. (“FNLI” or “the Company”)

The Issuer Credit Rating reflects a high possibility that the Nanhai People’s Government of Foshan (“the Nanhai government”) would provide strong support to FNLI if needed, in light of its full ownership of FNLI, FNLI’s strategic importance as an important local investment and development company (“LIDC”) that is responsible for public facility construction, urban renewal and state-owned properties’ leasing and management in Nanhai District, and the strong linkage between the Nanhai government and FNLI, including management supervision, strategic alignment, and ongoing operational and financial support. In addition, the Nanhai government may face significant negative impact on its reputation and financing activities should FNLI encounters any operational and financial difficulties.

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