Taizhou Hailing City Development Group Co., Ltd. (Surveillance Report)

Lianhe Ratings Global Limited (“Lianhe Global”) has affirmed ‘BBB-’ global scale Long-term Issuer Credit Rating of Taizhou Hailing City Development Group Co., Ltd. (“THCD” or “the company”); Issuer Rating Outlook Stable.

The Issuer Credit Rating reflects a high possibility that the People’s Government of Taizhou City (“Taizhou government”) would provide moderately strong support to THCD if needed. This mainly considers the Taizhou government’s full ownership of THCD, the high strategic importance of THCD to Taizhou and Hailing District in land development and consolidation, infrastructure construction and maintenance, and the strong linkage between the Taizhou government (via the Hailing District Government) and THCD, including appointment and supervision of the senior management, strategic alignment, major investment and financing plan decisions and ongoing government support. In addition, the Taizhou government may face negative impact on its reputation and financing activities should THCD encounters any operational or financial difficulties.

The Stable Outlook reflects our expectation that THCD’s current position in the region will remain while the Taizhou government will continue to ensure THCD’s stable operation.