The Issuer Credit Rating reflects a high possibility that Nanyang Municipal People’s Government (“the Nanyang government”) would provide strong support to NYIC if needed, in light of its 100% ownership of NYIC, NYIC’s strategic position as the core local investment and development company (“LIDC”) responsible for project development and city operation in Nanyang, and the strong linkage between the Nanyang government and NYIC, including management supervision, strategic alignment, and ongoing operational and financial support. In addition, the Nanyang government may face significant negative impact on its reputation and financing activities should NYIC encounter any operational or financial difficulties.