Fuyang Yingquan Industrial Investment Development 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 Fuyang Yingquan Industrial Investment Development Co., Ltd. (“FYIID” or “the company”)

The Issuer Credit Rating reflects a high possibility that the People’s Government of Yingquan District, Fuyang City (“Yingquan government”) would provide very strong support to FYIID if needed, in light of its full ownership of FYIID, FYIID’s strategic importance as the key local investment and development company (“LIDC”) that is responsible for infrastructure construction and industrial development in Yingquan District, Fuyang City (“Yingquan”), and the linkage between the Yingquan government and FYIID, 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 Yingquan government may face significant negative impact on its reputation and financing activities if FYIID encounters any operational and financial difficulties.

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