Huai’an Traffic Holding Group Company Limited (Initial Issuer Report)

Lianhe Global has assigned ‘BBB’ global scale Long-term Issuer Credit Rating with Stable Outlook to Huai’an Traffic Holding Group Company Limited (formerly known as Huai’an Traffic Holding Company Limited).

The Issuer Credit Rating reflects a high possibility that the Huai’an municipal government would provide strong support to Huai’an Traffic Holding Group Company Limited (“Huai’an Traffic” or “the company”) if needed, in light of its full ownership of Huai’an Traffic, Huai’an Traffic’s strategic position as the sole LGFV that is responsible for transportation development. There is a strong linkage between the Huai’an municipal government and Huai’an Traffic, including management supervision, strategic alignment, and ongoing operational and financial support. In addition, the Huai’an municipal government may face significant negative impact on its reputation, business, and financing activities should Huai’an Traffic encounter any operational or financial difficulties.

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