Nanxun Communications 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 Nanxun Communications Investment Group Co., Ltd. (“NCIG” or “the company”)

The Issuer Credit Rating reflects a high possibility that the People’s Government of Nanxun District (“Nanxun government”) would provide strong support to NCIG if needed, in light of its 100% ownership of NCIG, NCIG’s strategic importance as the sole state-owned entity for transportation related infrastructure investment, construction and operation and the important entity for water conservancy infrastructure construction in Nanxun District (“Nanxun”), and the linkage between the Nanxun government and NCIG, including control and supervision over the management, strategic alignment and ongoing operational and financial support. In addition, the Nanxun government may face significant negative impact on its reputation, business and financing activities if NCIG encounters any operational and financial difficulties.

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