The Issuer Credit Rating reflects a relatively high possibility that the Yancheng municipal government would provide moderately strong support to Yancheng Oriental Investment & Development Group Co., Ltd. (“Yancheng Oriental”) if needed, in light of Yancheng Oriental’s strategic position as the major developing and operating body of the Yancheng Economic and Technological Development Zone (“the Development Zone”) 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 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 strategic importance would remain intact while the Yancheng municipal government will continue to ensure Yancheng Oriental’s stable operation.