Zhejiang Qiantang River Investment Development 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 Zhejiang Qiantang River Investment Development Co., Ltd. (“ZQRID” or “the company”)

The Issuer Credit Rating reflects a high possibility that the People’s Government of Haining (“the Haining government”) would provide strong support to ZQRID if needed. This mainly considers the Haining government indirectly owns majority shares of ZQRID, ZQRID’s strategic importance as the sole local investment and development company (“LIDC”) responsible for infrastructure construction, land consolidation, as well as development and operation of industrial parks in Haining Economic Development Zone (“Haining EDZ”) and the linkage between the Haining government and ZQRID, including the appointment of senior management, strategic alignment, supervision of major investment and financing decisions and ongoing operational and financial support. In addition, the Haining government may face significant negative impact on its reputation and financing activities if ZQRID encounters any operational and financial difficulties.

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