This report does not constitute a rating action. Overview Key strengths Key risks Key local government financing vehicle (LGFV) in the economic zone of Yangzhou city in Jiangsu China, as a critical platform for zone operation. 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. Yangzhou Economic and Technological Development Zone Development (Group) Co. Ltd. (YETDZ Dev. Group) has an extremely high likelihood of receiving extraordinary support from the Yangzhou municipal government .
