Yangzhou Hanjiang State-owned Capital Investment Group Co., Ltd. (Initial Issuer Report)

The Issuer Credit Rating reflects a high possibility that the People’s Government of Hanjiang District (“the Hanjiang government”) would provide very strong support to HJSI if needed, in light of its full ownership of HJSI, HJSI’s strategic importance as an important local investment and development company (“LIDC”) responsible for project development in Yangzhou’s Hanjiang District (“Hanjiang”), and the linkage between the Hanjiang government and HJSI, including appointment of the senior management, strategic alignment, supervision of major investment and financing decisions and ongoing operational and financial support. In addition, the Hanjiang government may face significant negative impact on its reputation and financing activities if HJSI encounters any operational and financial difficulties.

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