The Issuer Rating upgrade to ‘BB’ reflects Redsun’s improved market position and financial leverage. It also considers the company’s operating track record and continuous expansion, especially in the Jiangsu Province and the Yangtze River Delta (“YRD”) region. However, Redsun’s rating is constrained by its moderate operating scale, less competitiveness on land acquisitions, moderate financial leverage, and lower interest coverage commensurate with the ‘BB’ category.