Moody's: State Grid notes Aa3

Moody's Investors Service said it assigned a first-time Aa3 issuer rating to State Grid Corp. of China, along with an Aa3 rating to the senior unsecured guaranteed notes issued by State Grid Overseas Investment (2013) Ltd., which are unconditionally and irrevocably guaranteed by State Grid.

The outlook is stable.

State Grid's Aa3 rating combines a baseline credit assessment of a3 and a three-notch uplift based on expected very high support from the Chinese government, Moody's said.

The baseline credit assessment is underpinned by the company's stable operating profile, bolstered in turn by its monopoly position in a huge and growing market, the agency said.

The assessment also reflects its proven operating track record and technological edges in Ultra High Voltage (UHV) and smart grid technology, Moody's said, along with a track record of sound financial discipline.

The government has a strong incentive to continue with the operational and regulatory support of the company and to offer extraordinary support if it encounters financial distress, the agency said.

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