S&P rates State Grid notes AA-

Standard & Poor's said it assigned an AA- long-term corporate credit rating to State Grid Corp. of China, along with a cnAAA Greater China regional scale rating.

The agency also assigned an AA- rating and cnAAA Greater China regional scale rating to the proposed senior unsecured notes issued by State Grid's fully owned subsidiary, State Grid Overseas Investment (2013) Ltd.

State Grid Corp. will unconditionally and irrevocably guarantee the notes.

The ratings reflect the company's A+ stand-alone credit profile and extremely high likelihood that the government of China will provide sufficient and timely extraordinary support to the company in the event of financial distress, S&P said.

The company's business risk profile is considered strong and its financial risk profile is considered modest, the agency said.

The ratings also take into account the company's critical role in constructing and operating safe and reliable power grids in China, S&P said.

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