Pizhou Communications Holding 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 Pizhou Communications Holding Group Co., Ltd. (“PCHG” or “the company”)

The Issuer Credit Rating reflects a high possibility that the People’s Government of Pizhou City, Xuzhou City (“Pizhou government”) would provide strong support to PCHG if needed, in light of its full ownership of PCHG, PCHG’s strategic importance as the important local investment and development company (“LIDC”) that is responsible for transportation-related facilities construction and operation in Pizhou City, Xuzhou City (“Pizhou”), and the linkage between the Pizhou government and PCHG, 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 Pizhou government may face significant negative impact on its reputation and financing activities if PCHG encounters any operational and financial difficulties.

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