Pingtan Comprehensive Pilot Zone City Development 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 Pingtan Comprehensive Pilot Zone City Development Group Co., Ltd. (“Pingtan CDG” or “the company”)

The Issuer Credit Rating reflects a high possibility that the de facto local government of Pingtan Comprehensive Pilot Zone (“PCPZ”), the Management Committee of PCPZ (“PCPZ MC”)  would provide strong support to Pingtan CDG if needed, in light of its full ownership of Pingtan CDG, Pingtan CDG’s strategic importance as the most important local investment and development company (“LIDC”) responsible for infrastructure construction and city operation in PCPZ, and the linkage between PCPZ MC and Pingtan CDG, including appointment and supervision of the senior management, strategic alignment, major investment and financing decisions and ongoing operational and financial support. In addition, PCPZ MC may face significant negative impact on its reputation and financing activities if Pingtan CDG encounters any operational and financial difficulties.

The Stable Outlook reflects our expectation that Pingtan CDG’s strategic importance would remain intact while PCPZ MC will continue to ensure Pingtan CDG’s stable operation.