Tonglu Newtown Development Investment 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 Tonglu Newtown Development Investment Co., Ltd (“TNDI” or “the company”)

The Issuer Credit Rating reflects a high possibility that the People’s Government of Tonglu County (“Tonglu government”) would provide moderately strong support to TNDI if needed, in light of its 100% ownership of TNDI, TNDI’s strategic importance as the sole state-owned entity for infrastructure construction and operation in Tonglu County Economic and Development Zone (“Tonglu EDZ”), and the linkage between the Tonglu government and TNDI, including control and supervision over the management, strategic alignment and ongoing operational and financial support. In addition, the Tonglu government may face negative impact on its reputation, business and financing activities if TNDI encounters any operational and financial difficulties.

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