Xingyang Urban Development Investment 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 Xingyang Urban Development Investment Group Co., Ltd. (“XUDI” or “the company”)

The Issuer Credit Rating reflects the People’s Government of Xingyang City’s (“the Xingyang government”) indirect majority ownership of XUDI, XUDI’s strategic importance as the most important LIDC responsible for project development and city operation in Xingyang City (“Xingyang”), Zhengzhou, and the linkage between the local government and XUDI, including appointment of the senior management, strategic alignment, supervision of major investment and financing plan decisions and ongoing operational and financial support, hence a high possibility that the local government would provide very strong support to XUDI if needed. In addition, if XUDI encounters any operational and financial difficulties, the local government could potentially face significant negative impact on its reputation and financing activities.

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