Jiangsu Zhongyang Clean Energy Development Co., Ltd. (Initial Issuer Report)

Lianhe Ratings Global Limited (“Lianhe Global”) publishes ‘BBB-’ global scale Long-term Issuer Credit Rating with Stable Outlook to Jiangsu Zhongyang Clean Energy Development Co., Ltd. (“JZCE” or “the company”)

The Issuer Credit Rating reflects a high possibility that the People’s Government of Yangzhong City (“the Yangzhong government”) would provide strong support to JZCE if needed, in light of its full ownership of JZCE, JZCE’s strategic importance as an important local investment and development company (“LIDC”) responsible for urban and industrial development, as well as rural revitalization, ports and other state-owned assets operations in Yangzhong City (“Yangzhong”), and the linkage between the Yangzhong government and JZCE, 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 Yangzhong government may face significant negative impact on its reputation and financing activities if JZCE encounters any operational and financial difficulties.

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