This report does not constitute a rating action. Overview Key strengths Key risks Dominant local government financing vehicle (LGFV) in the economic zone of Yangzhou city in Jiangsu China, as a critical platform for primary land development and infrastructure investment. Very high financial leverage due to high construction spending and on-lending or guarantees to other local state-owned enterprises (SOEs). Strong record of ongoing government support via capital injections, operating subsidies and interest subsidies. Weak operating cash flow because of weak profitability from government-mandated infrastructure projects. Extremely high likelihood of receiving extraordinary support from the Yangzhou government. Self-developed factories could weigh on cash flow due to high capital expenditure (capex) and long payback periods. . The Yangzhou Economic and Technological Development
