Yangzhou Economic and Technological Development Zone Development (Group) Co., Ltd. (Surveillance Report)

Lianhe Ratings Global Limited (“Lianhe Global”) has affirmed ‘BBB+’ global scale Long-term Issuer and Issuance Credit Rating of Yangzhou Economic and Technological Development Zone Development (Group) Co., Ltd. (“YETDG” or “the company”); Issuer Rating Outlook Stable.

The Issuer Credit Rating reflects a high possibility that Yangzhou Municipal People’s Government (“the Yangzhou government”) would provide strong support to YETDG if needed, in light of its full ownership of YETDG, YETDG’s strategic position as the major development and operation entity of the Yangzhou Economic and Technological Development Zone (“Development Zone”) and the strong linkage between the Yangzhou government and YETDG, including management supervision, strategic alignment, and ongoing operational and financial support. In addition, the Yangzhou government may face significant negative impact on its reputation and financing activities should YETDG encounter any operational or financial difficulties.

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