Fitch ups Baowu Steel, Baosteel

Fitch Ratings said it upgraded China Baowu Steel Group Corp. Ltd.’s long-term foreign- and local-currency issuer default ratings to A from A-.

At the same time, the agency upgraded Baoshan Iron & Steel Co., Ltd.'s (Baosteel) long-term issuer default rating to A from A-.

The rating watch evolving on the ratings was removed and the outlook is stable. A full list of rating actions is at the end of this rating action commentary.

Fitch said the removal of the evolving watch and the upgrade reflect the affirmation of Baowu Steel's standalone rating of BBB+ due to its position as one of the largest global steel producers with a strong financial profile and the increase in its ratings' one-notch uplift to a two-notch uplift to reflect its enhanced linkages with the Chinese state.

Baosteel's ratings are equalized with those of its parent, Baowu Steel due to their strong operational and strategic linkages, the agency added.

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