Taixing City Investment Development Group Co., Ltd. (Surveillance Report)

Lianhe Ratings Global Limited (“Lianhe Global”) has upgraded the global scale Long-term Issuer Credit Rating of Taixing City Investment Development Group Co., Ltd. (“TCID” or “the company”) to ‘BBB+’ from ‘BBB’; Issuer Rating Outlook Stable

The Issuer Credit Rating upgrade reflects the increased strategic importance of TCID in Taixing City (“Taixing”). The company continues to undertake infrastructure and affordable housing projects in Taixing. It also actively participates in Taixing’s city operation, such as water supply, gas supply, garbage disposal and sanitation services.

We believe there is a high possibility that the People’s Government of Taixing (“the Taixing government”) would provide very strong support to TCID if needed, in light of its full ownership of TCID, TCID’s strategic importance as a core local investment and development company (“LIDC”) in Taixing, and the linkage between the Taixing government and TCID, including appointment of the senior management, strategic alignment, supervision of major financing plan and investment decisions and ongoing operational and financial support. In addition, the Taixing government may face significant negative impact on its reputation and financing activities if TCID encounters any operational and financial difficulties.

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