Taizhou Huaxin Pharmaceutical Investment Co., Ltd. (Initial Issuer Report)

The Issuer Credit Rating reflects a high possibility that the Taizhou municipal government would provide moderately strong support to THPI if needed, in light of its majority ownership of THPI, THPI’s strategic position as the major development and operation entity of the Taizhou Medical New & Hi-tech Industrial Development Zone (the “Hi-tech Zone”) and the strong linkage between the Taizhou municipal government and THPI including management supervision, strategic alignment, and ongoing operational and financial support. In addition, the Taizhou municipal government may face negative impact on its reputation and business and financing activities should THPI encounter any operational or financial difficulties.

The Stable Outlook reflects our expectation that THPI’s strategic importance will remain intact while the Taizhou municipal government will continue to ensure THPI’s stable operation.