The Issuer Credit Rating reflects a high possibility that Jiangsu’s Wuxi municipal government would provide strong support to WCDI if needed. This mainly considers the Wuxi municipal government’s full ownership of WCDI, the high importance of WCDI to Wuxi in the municipal infrastructure construction and landscaping construction, and the strong linkage between the Wuxi municipal government and WCDI, including management supervision, ongoing operational and financial support. In addition, the Wuxi municipal government may face significant negative impact on its reputation and financing activities if WCDI were to encounter any operational and financial difficulties.
The Stable Outlook reflects our expectation that WCDI’s strategic importance would remain intact while the Wuxi municipal government will continue to ensure WCDI’s stable operation.