Weifang City Western Investment and Development Group 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 Weifang City Western Investment and Development Group Co., Ltd. (“WCWID” or “the company”)

The Issuer Credit Rating reflects a high possibility that the People’s Government of Weicheng District, Weichang City (“Weicheng government”) would provide strong support to WCWID if needed, in light of its full ownership of WCWID, WCWID’s strategic importance as the key local investment and development company (“LIDC”) that is responsible for infrastructure construction and operation and land consolidation in Weicheng District, Weifang City (“Weicheng”), and the linkage between the Weicheng government and WCWID, including appointment and supervision of the senior management, strategic alignment, major investment and financing plan decisions and ongoing operational and financial support. In addition, the Weicheng government may face significant negative impact on its reputation and financing activities if WCWID encounters any operational and financial difficulties.

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