Guangde State-owned Assets Investment and Management 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 Guangde State-owned Assets Investment and Management Co., Ltd. (“GSAIM” or “the company”)

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

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