The Issuer Credit Rating reflects a high possibility that the management committee of Weifang Hi-Tech Industrial Development Zone (“Management Committee”) (the de facto local government of Weifang Hi-Tech Industrial Development Zone (“Weifang HIDZ”) would provide strong support to SDGC if needed, in light of its indirectly majority ownership of SDGC, SDGC’s strategic importance as a key local investment and development company (“LIDC”) responsible for project development and city operation in Weifang HIDZ, and the linkage between the local government and SDGC. In addition, the local government may face significant negative impact on its reputation and financing activities if SDGC encounters any operational and financial difficulties.
The Stable Outlook reflects our expectation that SDGC’s strategic importance would remain intact while the local government will continue to ensure SDGC’s stable operation.