Guangyuan Lizhou Development 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 Guangyuan Lizhou Development Holding (Group) Co., Ltd. (“GLDH” or “the company”)

The Issuer Credit Rating reflects a high possibility that the People’s Government of Lizhou District (“the Lizhou district government”) would provide strong support to GLDH if needed. This mainly considers the Lizhou district government’s full ownership of GLDH, GLDH’s strategic importance as an important local investment and development company (“LIDC”) responsible for infrastructure development in Lizhou District, and the linkage between the Lizhou district government and GLDH, including the appointment of senior management, strategic alignment, supervision of major investment and financing decisions and ongoing operational and financial support. In addition, the Lizhou district government may face significant negative impact on its reputation and financing activities if GLDH encounters any operational and financial difficulties.

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