Xi’an Kingfar Holding (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 Xi’an Kingfar Holding (Group) Co., Ltd. (“Xi’an Kingfar” or “the company”)

The Issuer Credit Rating reflects a high possibility that the Management Committee of XETDZ (“XETDZ MC”), the de facto local government of Xi’an Economic and Technology Development Zone (“XETDZ”), would provide strong support to Xi’an Kingfar if needed, in light of its direct full ownership of Xi’an Kingfar, Xi’an Kingfar’s strategic importance as the most important local investment and development company (“LIDC”) responsible for city development and operation in XETDZ, and the linkage between the local government and Xi’an Kingfar, 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 local government may face significant negative impact on its reputation and financing activities if Xi’an Kingfar encounters any operational and financial difficulties.

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