Pengyuan International ’s issuance credit rating is a forward-looking analytical opinion about the creditworthiness of a specific financial obligation, a class of obligations, or a financial program such as medium-term note or commercial paper programs. The issuance credit ratings will also reflect the creditworthiness of credit enhancements on the obligation such as guarantees, insurance, and/or other forms of enhancement features if any. Issuance credit ratings can be either long-term or short-term.

Issuance credit ratings not only assess the likelihood of default, but also assess the relative seniority of the financial obligations and their ultimate recovery prospects in the event of default. Pengyuan International’s issuance ratings will be based on the nature and provisions of the financial obligations. In general, junior obligations will be rated below senior obligations and unsecured obligations are considered to have higher credit risks than secured obligations.

Pengyuan International reserves the right of final interpretation of its products and services.

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