Jianli City Development Investment 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 Jianli City Development Investment Group Co., Ltd. (“JCDIG” or “the company”)

The Issuer Credit Rating reflects a high possibility that the People’s Government of Jianli City, Jingzhou City (“Jianli government”) would provide very strong support to JCDIG if needed, in light of its full ownership of JCDIG, JCDIG’s strategic importance as the sole local investment and development company (“LIDC”) that is responsible for infrastructure construction and state-owned asset management in Jianli County, Jingzhou City (“Jianli”), and the linkage between the Jianli government and JCDIG, 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 Jianli government may face significant negative impact on its reputation and financing activities if JCDIG encounters any operational and financial difficulties.

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