Wuxi Construction and Development Investment Co., Ltd. (Surveillance Report)

Lianhe Ratings Global Limited (“Lianhe Global”) has upgraded the global scale Long-term Issuer Credit Rating of Wuxi Construction and Development Investment Co., Ltd. (“WCDI”) to ‘A+’from ‘A’, Issuer Rating Outlook Stable.

The Issuer Credit Rating upgrade reflects the increased strategic importance of WCDI in Wuxi City (“Wuxi”). The company continues to undertake key infrastructure projects in Wuxi and actively diversifies its business portfolio to financial business (such as leasing and industrial investment) to support the local urban and economic development.

We believe there is a high possibility that Wuxi Municipal People’s Government (“Wuxi government”) would provide strong support to WCDI if needed. This mainly considers the Wuxi government’s indirectly full ownership of WCDI, the high importance of WCDI to Wuxi in infrastructure construction and industrial investment, and the strong linkage between the Wuxi government and WCDI, including management supervision, strategic alignment and ongoing operational and financial support. In addition, the Wuxi government may face significant negative impact on its reputation and financing activities if WCDI encounters any operational and financial difficulties.

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