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CK Hutchison Capital Securities (Europe) Ltd. -- Moody's announces completion of a periodic review for a group of Conglomerates, Investment Holding and Other issuers in Asia

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Announcement of Periodic Review: Moody's announces completion of a periodic review for a group of Conglomerates, Investment Holding and Other issuers in AsiaGlobal Credit Research - 16 Mar 2022New York, March 16, 2022 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings -and other ratings that are associated with the same analytical units for the rated entity(entities) listed below.The review was conducted through a portfolio review discussion held on 9 March 2022 in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. A possible outcome from periodic reviews is a referral of a rating to a rating committee."IMPORTANT NOTICE: MOODY'S RATINGS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS. SUCH USE WOULD BE RECKLESS AND INAPPROPRIATE. SEE FULL DISCLAIMERS BELOW."This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future. Credit ratings and outlook/review status cannot be changed in a portfolio review and hence are not impacted by this announcement.Key Rating ConsiderationsThe principal methodology used for these rated entities was Aerospace and Defense published in October 2021. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.Key rating considerations on a forward-looking basis may include but are not limited to the following summarized below.Aerospace and DefenseScale: Scale is considered as an indicator of the overall depth of a company's business, its success in attracting a variety of customers, as well as its resilience to shocks, such as sudden shifts in demand or rapid cost increases. A company with greater scale typically has a broader platform of products and services and the ability to offer them to a wider range of customers, as well as more flexibility to invest in research and development. Revenue and Operating Profit are indicators of scale.Business Profile: The business profile of an aerospace and defense company is considered as it influences its ability to generate sustainable earnings and operating cash flows. Competitive position and expected revenue stability are components of business profile.Profitability and Efficiency: Profits are considered because they are needed to generate sustainable cash flow and maintain a competitive position. For an aerospace and defense company, we assess this using its operating margin which may indicate the importance of its product to customers, its ability to avoid cost overruns, its success in pricing contracts and managing its supply chain, and its overall contract execution capabilities.Leverage and Coverage: Leverage and cash flow coverage is considered and can indicate a company's financial flexibility, long-term sustainability, and resilience through business and economic cycles. Aerospace and defense companies typically need to adapt to new programs and to invest in research and development, making financial flexibility critical for long-term sustainability. Leverage and coverage can be indicated by ratios such as Debt/EBITDA, Retained Cash Flow/Net Debt, and EBIT/Interest.Financial Policy: Financial policy encompasses management and board tolerance for financial risk and commitment to a strong credit profile. It can affect debt levels, credit quality, the future direction for the company and the risk of adverse changes in financing and capital structure. Financial risk tolerance serves as a guidepost to investment and capital allocation.Other Considerations: Other considerations may include financial controls and the quality of financial reporting; corporate legal structure; the quality and experience of management; assessments of corporate governance as well as environmental and social considerations; exposure to uncertain licensing regimes; and possible government interference in some countries. Regulatory, litigation, liquidity, technology, and reputational risk as well as changes to consumer and business spending patterns, competitor strategies and macroeconomic trends.• Singapore Technologies Engineering Ltd.The principal methodology used for these rated entities was Business and Consumer Services published in November 2021. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.Key rating considerations on a forward-looking basis may include but are not limited to the following summarized below.Business and Consumer ServicesScale: Scale is considered because larger scale can be an indicator of a company's ability to influence business trends and pricing within its service segments and to support a stable or growing market position. Scale also can be an indicator of greater resilience to changes in demand, geographic diversity, cost absorption, R&D capabilities and of greater bargaining strength with customers, labor, and vendors. Revenue is an indicator of scale.Business Profile: The business profile of a company is considered because it greatly influences its ability to generate sustainable earnings and operating cash flows. The business and consumer service industry comprises a vast array of business models encompassing a multitude of identifiable customer bases worldwide. We consider the underlying demand characteristics of a company's service offerings and their relative breadth, strength, and endurance of demand. Companies that have established a long history of strong demand for a diverse range of service offerings that are critical to customer needs generally entail lower risk compared to those that offer a single line of service which have less importance for customer needs or have a limited history of success.Profitability: Profits matter because they are necessary to maintain a business's competitive position, including sufficient reinvestment in marketing, research, facilities, and human capital. Sustained high profitability is generally a strong indicator of substantial competitive advantages, particularly if combined with evidence of a stable or rising market share. EBITA Margin is an indicator of profitability.Leverage and Coverage: Leverage and coverage measures are indicators of a company's financial flexibility and long-term viability, including its ability to adapt to changes in the economic and business environment within the segments in which it operates. Indicators of leverage and coverage include ratios such as: Debt / EBITDA, EBITA / Interest Expense, and Retained Cash Flow/ Net Debt.Financial Policy: Management and board tolerance for financial risk is a consideration because it directly affects debt levels, credit quality, and the risk of adverse changes in financing and capital structure. Our assessment of financial policies includes the perceived tolerance of a company's governing board and management for financial risk and the future direction for the company's capital structure. Considerations include a company's public commitments in this area, its track record for adhering to commitments, and our views on the ability for the company to achieve its targets. Financial risk tolerance serves as a guidepost to investment and capital allocation.Other Rating Considerations: Other considerations may include but are not limited to financial controls and the quality of financial reporting; corporate legal structure; the quality and experience of management; assessments of corporate governance as well as environmental and social considerations; exposure to uncertain licensing regimes; and possible government interference in some countries. Regulatory, litigation, liquidity, technology, and reputational risk as well as changes to consumer and business spending patterns, competitor strategies and macroeconomic trends also affect ratings.• Aristocrat Leisure Ltd• Australian Technology Innovators Pty Limited• Brambles Limited• Bright Scholar Education Holdings Ltd• China Dili Group• China Travel Service (Holdings) Hong Kong Ltd • CITIC Group Corporation • Li & Fung Limited • United Tractors Tbk (PT) • Vistra Group Holdings (BVI) I Limited• Wanda Commercial Properties (HK) Co. LimitedThe principal methodology used for these rated entities was Business and Consumer Services (Japanese) published in November 2021. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.Key rating considerations on a forward-looking basis may include but are not limited to the following summarized below.Business and Consumer Services (Japanese)Scale: Scale is considered because larger scale can be an indicator of a company's ability to influence business trends and pricing within its service segments and to support a stable or growing market position. Scale also can be an indicator of greater resilience to changes in demand, geographic diversity, cost absorption, R&D capabilities and of greater bargaining strength with customers, labor, and vendors. Revenue is an indicator of scale.Business Profile: The business profile of a company is considered because it greatly influences its ability to generate sustainable earnings and operating cash flows. The business and consumer service industry comprises a vast array of business models encompassing a multitude of identifiable customer bases worldwide. We consider the underlying demand characteristics of a company's service offerings and their relative breadth, strength, and endurance of demand. Companies that have established a long history of strong demand for a diverse range of service offerings that are critical to customer needs generally entail lower risk compared to those that offer a single line of service which have less importance for customer needs or have a limited history of success.Profitability: Profits matter because they are necessary to maintain a business's competitive position, including sufficient reinvestment in marketing, research, facilities, and human capital. Sustained high profitability is generally a strong indicator of substantial competitive advantages, particularly if combined with evidence of a stable or rising market share. EBITA Margin is an indicator of profitability.Leverage and Coverage: Leverage and coverage measures are indicators of a company's financial flexibility and long-term viability, including its ability to adapt to changes in the economic and business environment within the segments in which it operates. Indicators of leverage and coverage include ratios such as: Debt / EBITDA, EBITA / Interest Expense, and Retained Cash Flow/ Net Debt.Financial Policy: Management and board tolerance for financial risk is a consideration because it directly affects debt levels, credit quality, and the risk of adverse changes in financing and capital structure. Our assessment of financial policies includes the perceived tolerance of a company's governing board and management for financial risk and the future direction for the company's capital structure. Considerations include a company's public commitments in this area, its track record for adhering to commitments, and our views on the ability for the company to achieve its targets. Financial risk tolerance serves as a guidepost to investment and capital allocation.Other Rating Considerations: Other considerations may include but are not limited to financial controls and the quality of financial reporting; corporate legal structure; the quality and experience of management; assessments of corporate governance as well as environmental and social considerations; exposure to uncertain licensing regimes; and possible government interference in some countries. Regulatory, litigation, liquidity, technology, and reputational risk as well as changes to consumer and business spending patterns, competitor strategies and macroeconomic trends also affect ratings.• Recruit Holdings Co., Ltd.The principal methodology used for these rated entities was Chemical Industry published in March 2019. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.Key rating considerations on a forward-looking basis may include but are not limited to the following summarized below.Chemical IndustryScale: Scale is considered because it is an indicator of a company's revenue-generating capability and its resilience to shocks, such as sudden shifts in demand or rapid cost increases. Scale also greatly influences a chemical company's market strength and the availability of capital. Additionally, scale is an important indicator of a chemical company's capacity to sustain earnings and generate cash flow. Scale can provide indications of a chemical company's other strengths, including resilience to changes in product demand, cost absorption, research and development capabilities and bargaining strength with customers and raw material suppliers. Scale is measured using total reported revenue, and net property, plant & equipment.Business Profile: The business profile of a chemical company is important because it greatly influences its ability to generate sustainable earnings and operating cash flows. Our assessment is based on our expectations for cash flow volatility. Core aspects of a chemical company‘s business profile are its market position, product and geographic diversity, operational execution as well as technological leadership and market position prospects, all of which can reduce volatility through economic cycles.Profitability: Profitability is an important indicator of a chemical company's strength and durability and can reflect the competitiveness of its product portfolio. It provides some indication of a chemical company's ability to withstand economic downturns, reinvest in fixed assets and service debt and other obligations. Relative cost position is important for chemical companies because in cyclical or economic downturns, product prices often decline to the point where only companies with lower costs generate meaningful cash flow. Profitability can be an important indicator of how much value a company's products add and whether they are specialty in nature or commodity-like, or of its operating cost efficiency. A chemical company's operating cost position is a function of a number of characteristics that include its size, access to low-cost raw materials, location of assets, labor costs and capital invested. EBITA Margin and Return on Average Assets are indicators of profitability.Leverage and Coverage: Leverage and cash flow coverage measures provide important indications of a chemical company's financial flexibility and long-term viability. Strength in this area is an indicator of a company's investment capabilities, and its ability to withstand business cycle fluctuations and respond to unexpected challenges. Among others, ratios such as Debt/ EBITDA, Retained Cash Flow/ Debt, and EBITDA/ Interest Expense are indicators of leverage and coverage.Financial Policy: Financial policy encompasses management and board tolerance for financial risk and commitment to a strong credit profile. It is an important rating determinant, because it directly affects debt levels, credit quality, the future direction for the company and the risk of adverse changes in financing and capital structure. Financial risk tolerance serves as a guidepost for investment and capital allocation. Liquidity management is also an important aspect of overall risk management and can provide insight into risk tolerance.Other Factors: Other factors may include, but are not limited to, financial controls and the quality of financial reporting; corporate legal structure; the quality and experience of management; assessments of corporate governance as well as environmental and social considerations; exposure to uncertain licensing regimes; and possible government interference in some countries. Regulatory, litigation, liquidity, technology, and reputational risk as well as changes to consumer and business spending patterns, competitor strategies and macroeconomic trends are also considered.• Sinochem International CorporationThe principal methodology used for these rated entities was Investment Holding Companies and Conglomerates published in July 2018. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.Key rating considerations on a forward-looking basis may include but are not limited to the following summarized below.Investment Holding Companies and ConglomeratesFor Investment Holding Companies we consider the following factors:Investment Strategy: Investment strategy is considered because transparent and more conservative investment strategies can provide a longer-term view of an investment holding company's business profile, which is particularly relevant given the tendency for investment holding companies to acquire and divest assets. Greater visibility over the evolution of the company's investment portfolio is supported by clearly defined investment strategies in terms of the types of assets the company seeks to invest in, the intended tenure of its investments and the targeted composition of its investment portfolio. We assess the investment holding company's investment policies and guidelines, as well as management track record. The existence of publicly communicated goals and a commitment to adhere to these is also helpful in our assessment, particularly when a proven track record is present.Asset Quality: The asset quality of the investment portfolio represents one of the drivers of the company's credit risk. Our assessment considers investment concentration, geographic and business diversity, and portfolio transparency. The transparency and consistency of management in communicating information is a key element of our analysis. Listed investments in markets where regulatory disclosure requirements are strong can help to provide more reliable information.Financial Policy: Management and board tolerance for financial risk is considered as it directly affects debt levels, credit quality, and the risk of adverse changes in financing and capital structure. This is important given an investment holding company's exposure to equity risks, which can result in greater volatility in leverage metrics relative to other corporates. The acquisition and divestiture activities of investment holding companies also make it more challenging to estimate future leverage. Our assessment of financial policies includes the perceived tolerance of a company's governing board and management for financial risk and the future direction for the company's capital structure. Considerations also include a company's public commitments in this area, its track record for adhering to commitments, and our views on the ability for the company to achieve its targets.Estimated Market Value-Based Leverage (MVL): The majority of an investment holding company's assets are typically equity participations in subsidiaries and associates. In the event that the holding company decides to lever its equity returns by funding part of the investments through the issuance of debt, the credit risk of this debt is significantly impacted by asset values available to cover potential fixed debt charges. The MVL is measured as Net Debt/Estimated Market Value of Portfolio Assets.Debt Coverage and Liquidity: Operational cash flows that can regularly cover interest expenses reflect positively on the investment holding company's financial flexibility and long-term viability. Investment holding companies that do not have a sufficiently mature portfolio paying an adequate level of dividends to cover their interest and debt payments are more reliant upon cash and credit facilities, which we believe should be reserved for a market downturn. The timing of debt repayments can play a particularly significant role in the credit profile of an investment holding company as the concentration of maturities can present liquidity challenges and heighten refinancing risk. Debt Coverage and Liquidity is measured by ratios such as Funds from Operations plus Interest/ Interest Expense and Liquidity/Debt maturities.Other Considerations: Other considerations may include, but are not limited to, corporate governance, financial controls, liquidity management, group complexity, degree of influence over dividends of investees, event risk as well as parental and institutional support.For conglomerates we incorporate a balanced view of the credit risk in each business segment, with further consideration of the potential overall risk reduction due to industry and country diversification of assets and cashflows, portfolio stability, together with the ownership structure and the relationship between subsidiaries and the broader group.Credit Risk of Each Business Segment: We assess the individual business and credit risk profile of each major industry segment of a conglomerate by applying the scorecard from the respective industry sector methodology. In most cases, it is most meaningful to do this only for the two or three largest industry segments. Where necessary, this approach includes an allocation of the conglomerate's Holdco debt to its subsidiary businesses in order to estimate individual ratios which allow for a weighted average calculation for the total group. The weighting is usually centered around cash flow metrics (such as each major segment's contribution to EBITDA) since this can represent an approximation for the debt capacity of the various subsidiaries.Risk Reduction from Industry/Country Diversification: Business diversification within a conglomerate can bring potential benefits for creditors. At the same time, diversification exists only to the extent that correlation is low across the various businesses. We therefore take a very pragmatic and cautious approach to diversification.Portfolio Stability: The stability of a conglomerate's portfolio during a certain time period is assessed by analyzing the stability of investments in assets and their asset mix (e.g. by sector, country, or revenue vs. cash flow focus), the number of acquisitions, spin-offs, and "greenfield" developments. Strong discipline with clear guidance on a balanced investment strategy and limited event risk is considered as a positive step for the overall credit risk of the conglomerateOwnership Structure: The type of ownership might be a potential source of benefit for the credit assessment of the conglomerate. For example, a conglomerate with stable ownership (possibly majority remaining with a family) and a clear succession plan is assessed positively. Conversely, unclear ownership influences or weak governance structures may impair the overall rating outcome, and is assessed negatively.Relationship Between Subsidiaries and the Broader Group: There might be circumstances under which the parent holding provides specific financial support to a business which is part of the overall conglomerate. This may be accomplished, for example, through intercompany loans, equity top-ups, asset transfers, granting of financial guarantees or debt forgiveness. The overall strength of support depends on the type of measure and our assessment of the willingness and ability of the parent to grant this support.• Anhui Provincial Invest. Grp. Hldg. Co., Ltd.• Beijing Capital Group Co., Ltd.• Beijing State-owned Capital Op and Mgmt• China Jianyin Investment Limited• CK Hutchison Holdings Limited• Fosun International Limited• Guangxi Beibu Gulf International Port Group• Guangxi Investment Group Co. Ltd• Guangzhou Development District Hldg Grp Ltd• Jardine Matheson Holdings Limited• Ping An Real Estate Company Ltd.• Pingan Real Estate Capital Limited• Reliance Industries Limited• Shandong Guohui Investment Co., Ltd.• Shenzhen Investment Holdings Co., Ltd.• State Development & Investment Corp., Ltd.• Temasek Holdings (Private) LimitedThe principal methodology used for these rated entities was Rating Transactions Based on the Credit Substitution Approach: Letter of Credit-backed, Insured and Guaranteed Debts published in May 2017. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.Key rating considerations on a forward-looking basis may include but are not limited to the following summarized below.Rating Transactions Based on the Credit Substitution Approach: Letter of Credit-backed, Insured and Guaranteed DebtsThird-party credit support: The goal of third-party credit support is to substitute the credit risk of the support provider for the credit risk of the issuer. For credit substitution to be achieved, investors must be insulated from the risk of payment default by the underlying obligor. Generally, the long-term ratings on credit-supported transactions track the long-term rating assigned to the credit provider.Additional Considerations: Credit substitution requires more than just the presence of a credit support instrument from a third-party credit provider. The transaction documentation provides clear instructions to ensure that payments under the credit support facility are made when due and that there are no impediments to the timely payment of debt service. The key elements evaluated include: mitigation of bankruptcy risk of issuer; sufficiency of credit support; structural provisions which provide for the timely payment of debt service; bondholders to be paid in full if credit support expiration or termination will result in a change.• LOTTE CorporationThe principal methodology used for these rated entities was Retail published in November 2021. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.Key rating considerations on a forward-looking basis may include but are not limited to the following summarized below.RetailScale: Scale for retailers carries many benefits, from buying power with vendors to potential price leadership, both of which can result in meaningful competitive advantages versus smaller companies. Scale is measured using total reported revenue.Business Profile: In the retail industry, those companies that are characterized by selling products with relatively inelastic demand are viewed as less vulnerable to changes in consumer preferences or competitive threats than are companies that offer more discretionary products or products with more elastic demand. This business profile is based on two sub-factors: stability of product and execution & competitive position.Leverage and Coverage: Financial leverage and coverage measures are indicators of a company's financial flexibility and long-term viability. Financial flexibility is critical to retailers as they adapt their businesses to almost constant changes in consumer behavior. Among others, ratios such as Debt/ EBITDA, EBIT/ Interest Expense, and Retained Cash Flow/ Net Debt are indicators of leverage and coverage.Financial Policy: Management and board tolerance for financial risk is considered as it directly affects debt levels, credit quality, and the risk of adverse changes in financing and capital structure. Our assessment of financial policies includes the perceived tolerance of a company's governing board and management for financial risk and the future direction for the company's capital structure. Considerations include a company's public commitments in this area, its track record for adhering to commitments, and our views on the ability of the company to achieve its targets.Other Factors: Other factors may include, but are not limited to: financial controls and the quality of financial reporting; corporate legal structure; the quality and experience of management; assessments of corporate governance as well as environmental and social considerations; exposure to uncertain licensing regimes; and possible government interference in some countries. Regulatory, litigation, liquidity, technology, and reputational risk as well as changes to consumer and business spending patterns, competitor strategies and macroeconomic trends also affect ratings.• China Tourism Group Corporation LimitedThe principal methodology used for these rated entities was Trading Companies published in June 2016. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.Key rating considerations on a forward-looking basis may include but are not limited to the following summarized below.Trading CompaniesScale: Scale, as indicated through revenues and assets (fixed assets and total assets), is typically indicative of business position, ability to influence business trends and pricing, to weather the vagaries of economic cycles, and to support a stable or growing market position. Scale also can be an indicator of resilience to changes in product demand, geographic diversity, cost absorption and bargaining strength with customers and suppliers.Business Profile: Business Profile considers the strength of the company's global presence, the diversity of its products, its long-term competitiveness, the stability of its performance, its long-term viability, and its risk profile. Our assessment for Business Profile includes: (i) geographic, operational and product diversity, (ii) competitive advantages, (iii) durability of its market share and customer relationships, (iv) the stability of performance over time, (v) the competitive landscape in each key market, (vi) the threat posed by potential new entrants or technological change, (vii) the degree to which products or services are differentiated, (viii) growth strategy, and (ix) risk profile. The company's risk profile considers a broad range of issues, including the perceived likelihood that the company might undertake sizable or frequent acquisitions in new markets that would raise business risk, exposures to volatile commodity prices and management's policies and practices concerning proprietary trading. The level of vertical integration, the percentage of sales and earnings that arise from merchandising activities and the evolution of the company's business over time might also be considered.Leverage: Leverage can indicate a company's financial flexibility, long-term viability, ability to make new investments, to weather the vagaries of the business cycle and respond to unexpected challenges, to access to external funding, and to absorb the negative impact from volatile commodity prices and large shifts in consumer demand. Some indicators of leverage include: Debt/ Book Capitalization, Net Debt/ EBITDA, and Funds from Operations/ Debt.Financial Policy: Management and board tolerance for financial risk is a rating determinant as it directly affects debt levels, credit quality and the risk of adverse changes in financing and capital structure. Considerations can include a company's public commitments in this area, its track record for adhering to commitments, and views on the ability of the company to achieve its targets. Financial risk tolerance serves as a guidepost to investment and capital allocation.Other Considerations: Additional considerations also include but are not limited to: our assessment of the quality of management, corporate governance, financial controls, liquidity management, event risk and seasonality.• COFCO (Hong Kong) LimitedThe principal methodology used for these rated entities was Government-Related Issuers Methodology published in February 2020. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.Key rating considerations on a forward-looking basis may include but are not limited to the following summarized below.Government-Related Issuers MethodologyAssigning a Baseline Credit Assessment (BCA): The majority of Government-Related Issuers (GRIs) begin with an assessment of the GRI's standalone strength (i.e. BCA) – its ability to service and repay outstanding debt without recourse to extraordinary support from the supporting government - using the published sector-specific methodology that is most suitable for the predominant activities of the GRI. Our assessment of standalone strength includes any day-to-day support received from the government that can be clearly distinguished from extraordinary support. Support mechanisms, such as an obligation of the government to ensure the GRI's solvency and liquidity, are reflected in the BCA when they are legally or contractually documented.Government uplift: The GRI's ratings include any uplift due to systemic support and typically focus on three structural factors and three factors explaining the level of the government's willingness to provide support. Structural factors address the legal and quasi-legal aspects of the government's relationship with the GRI and include: (1) guarantees, (2) ownership level and (3) barriers to support. The factors underlying willingness consider the softer connections between the two entities and include (4) the likelihood of government intervention, (5) political linkages and (6) economic importance. Support is determined using a joint default analysis framework which considers an estimate of the likelihood of extraordinary support, an assessment of the credit quality of the supporting government, and default correlation between the two entities.GRIs without a BCA: In limited instances, it is not possible or meaningful to assign a BCA. The GRI is so inextricably linked to the government that a meaningful standalone BCA cannot be derived. In such cases, a top-down analytical approach is used that chiefly considers the ability and willingness of the government to provide timely support, instead of the usual bottom-up approach of starting with the BCA and then considering uplift towards the government's rating.• Anhui Provincial Invest. Grp. Hldg. Co., Ltd.• Beijing Capital Group Co., Ltd.• Beijing State-owned Capital Op and Mgmt• China Jianyin Investment Limited• China Tourism Group Corporation Limited• CITIC Group Corporation• Guangxi Beibu Gulf International Port Group• Guangxi Investment Group Co. Ltd• Guangzhou Development District Hldg Grp Ltd• Shandong Guohui Investment Co., Ltd.• Shenzhen Investment Holdings Co., Ltd.• Singapore Technologies Engineering Ltd.• State Development & Investment Corp., Ltd.• Temasek Holdings (Private) LimitedThis announcement applies only to Rated Entities with EU rated, UK rated, EU endorsed and UK endorsed ratings. Rated Entities, with Non EU rated, non UK rated, non EU endorsed and non UK endorsed ratings may be referenced herein to the extent necessary, if they are part of the same analytical unit.Please see the Issuer page on www.moodys.com, for each of the ratings covered, most updated credit rating action, rating history, and Credit Rating action Press Release including the rating rationale and factors that could lead to a rating upgrade or downgrade.This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history. Releasing Office: Moody's Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A. 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Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing its Publications.To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING, ASSESSMENT, OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any credit rating, agreed to pay to Moody’s Investors Service, Inc. for credit ratings opinions and services rendered by it fees ranging from $1,000 to approximately $5,000,000. MCO and Moody’s Investors Service also maintain policies and procedures to address the independence of Moody’s Investors Service credit ratings and credit rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold credit ratings from Moody’s Investors Service and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any credit rating, agreed to pay to MJKK or MSFJ (as applicable) for credit ratings opinions and services rendered by it fees ranging from JPY100,000 to approximately JPY550,000,000.MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements. ​