Yancheng Oriental Investment & Development Group Co., Ltd. (Initial Issuer Report)

Lianhe Ratings Global Limited (“Lianhe Global”) has assigned a ‘BB+’ global scale Long-term Issuer Credit Rating to Yancheng Oriental Investment & Development Group Co., Ltd. (“Yancheng Oriental”). The Outlook is Stable.

The Issuer Credit Rating reflects a high possibility that the Yancheng municipal government would provide strong support to Yancheng Oriental if needed, in light of Yancheng Oriental’s strategic position as the major developing and operating body of Yancheng Economic and Technological Development Zone (“YETDZ”) and the strong linkage between the Yancheng municipal government and Yancheng Oriental including management supervision, strategic alignment, and ongoing operational and financial support. In addition, the Yancheng municipal government may face a significant negative impact on its reputation, business, and financing activities should Yancheng Oriental encounter any operational or financial difficulties.

The Stable Outlook reflects our expectation that Yancheng Oriental’s linkage with the local government will be strengthened and it is likely to receive more supports directly from the Yancheng municipal government in the form of financial resource allocation or management supervision to sustain its ongoing business operation after the shareholding structure change to the municipal level from the prior district/zone level in August 2019.