Taizhou Huaxin Pharmaceutical Investment Co., Ltd. (Surveillance Report)

Lianhe Ratings Global Limited (“Lianhe Global”) has upgraded the global scale Long-term Issuer Credit Rating of Taizhou Huaxin Pharmaceutical Investment Co., Ltd. to ‘BBB’ from ‘BBB-’. The Outlook is Stable.

The Issuer Rating upgrade reflects the increased strategic importance of THPI in the development of Taizhou City (“Taizhou”), as demonstrated in its strengthened role in further promoting the comprehensive development of health industry in Taizhou, one of pillar industries of the city.

We believe there is a high possibility that the Taizhou Municipal People’s Government (“Taizhou Government”) would provide moderate support to THPI if needed, in light of its indirect ownership of THPI through Taizhou State-owned Investment Group Co., Ltd. (“TSI”), THPI’s strategic position as the major pharmaceutical investment and operating entity in Taizhou and the strong linkage between Taizhou Government and THPI including management supervision, strategic alignment, and ongoing operational and financial support. In addition, Taizhou Government may face negative impact on its reputation and financing activities should THPI encounter any operational or financial difficulties.

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