Wuxi Urban Construction Development Group Co., Ltd. (Surveillance Report)

Lianhe Ratings Global Limited (“Lianhe Global”) has affirmed ‘A+’ global scale Long-term Issuer Credit Rating of Wuxi Urban Construction Development Group Co., Ltd. (“WUCD” or “the company”); Issuer Rating Outlook is Stable.

The Issuer Credit Rating reflects a high possibility that the Wuxi Municipal People’s Government (“Wuxi government”) would provide strong support to WUCD if needed, in light of its full ownership of WUCD, WUCD’s strategic position as an important local investment and development company (“LIDC”) for urban construction and development in Wuxi and the strong linkage between the Wuxi government and WUCD 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 business and financing activities should WUCD encounters any operational or financial difficulties.

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