Hunan Ruixin Industrial Operation 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 Hunan Ruixin Industrial Operation Management Co., Ltd. (“HRIOM” or “the company”)

The Issuer Credit Rating reflects a high possibility that the People’s Government of Yuanjiang City (“Yuanjiang government”) would provide very strong support to HRIOM if needed, in light of its 90% ownership of HRIOM, HRIOM’s strategic importance as an important local investment and development company (“LIDC”) responsible for state-owned assets operation and investment in Yuanjiang City (“Yuanjiang”), and the linkage between the Yuanjiang government and HRIOM, 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 Yuanjiang government may face significant negative impact on its reputation and financing activities if HRIOM encounters any operational and financial difficulties.

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