Jiangsu Yangjing Petrochemical 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 Jiangsu Yangjing Petrochemical Group Co., Ltd. (“JYPG” or “the company”)

The Issuer Credit Rating reflects a high possibility that the People’s Government of Lianyungang Municipality (“the Lianyungang government”) would provide strong support to JYPG if needed. This mainly considers the Lianyungang government’s majority ownership of JYPG, JYPG’s strategic importance as an important local investment and development company (“LIDC”) responsible the development and operation of Lianyungang Petrochemical Industry Base (“the petrochemical industry base”), and the linkage between the Lianyungang government and JYPG, including the appointment of senior management, strategic alignment, supervision of major investment and financing decisions and ongoing operational and financial support. In addition, the Lianyungang government may face significant negative impact on its reputation and financing activities if JYPG encounters any operational and financial difficulties.

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