Huangshi Yimin Investment 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 Huangshi Yimin Investment Co., Ltd. (“HYI” or “the company”)

The Issuer Credit Rating reflects a high possibility that the People’s Government of Huangshi City (“Huangshi government”) would provide moderately strong support to HYI if needed, in light of its indirectly majority ownership of HYI, HYI’s strategic importance as the important Local Investment and Development Company (“LIDC”) for affordable housing construction in Huangshi Economic and Technological Development Zone (“Huangshi EDZ”), and the linkage between the Huangshi government and HYI, including supervision over the management, strategic alignment, as well as policies support and assets injection. In addition, the Huangshi government may face negative impact on its reputation, business and financing activities if HYI encounters any operational and financial difficulties.

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