The Issuer Credit Rating reflects a high possibility that the People’s Government of Xinyi (“the Xinyi government”) would provide very strong support to JZURID if needed, in light of its direct full ownership of JZURID, JZURID’s strategic importance as the key local investment and development company (“LIDC”) that is responsible for comprehensive urban operation, project construction, area development and state-owned asset management in Xinyi , Suzhou City (“Xinyi ”), and the linkage between the Xinyi government and JZURID, 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 Xinyi government may face significant negative impact on its reputation and financing activities if JZURID encounters any operational and financial difficulties.
The Stable Outlook reflects our expectation that JZURID’s strategic importance would remain intact while the Xinyi government will continue to ensure JZURID’s stable operation.