Shouguang Port Investment 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 Shouguang Port Investment Holding Group Co., Ltd. (“SGPI” or “the company”)

The Issuer Credit Rating reflects a high possibility that the People’s Government of Shouguang City (“Shouguang government”) would provide strong support to SGPI if needed. This mainly considers the Shouguang government’s ownership of SGPI, SGPI’s strategic importance as an important local investment and development company (“LIDC”) responsible for project construction in Shouguang City (“Shouguang”), and the strong linkage between the Shouguang government and SGPI, including the appointment of senior management, strategic alignment, supervision of major investment and financing decisions and ongoing operational and financial support. In addition, the Shouguang government may face significant negative impact on its reputation and financing activities if SGPI encounters any operational and financial difficulties.

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