Fitch upgrades State Grid International

Fitch Ratings said it upgraded State Grid International Development Ltd.’s long-term foreign-currency issuer default rating to A+ from A.

“The upgrade of SGID’s rating, which is now equalized with that of its parent, State Grid Corp. of China’s (SGCC, A+/stable), is based on Fitch’s re-assessment of the legal ties between the two entities from moderate to strong, resulting in strengthened overall linkage in accordance with Fitch’s parent and subsidiary rating linkage criteria,” the agency said in a press release.

Fitch also published SGID’s long-term senior unsecured rating at A+ and affirmed the A+ rating on the senior unsecured notes issued by SGID’s wholly owned subsidiary, State Grid Europe Development (2014) plc. (SGED).

The notes are guaranteed by SGID. State Grid Corp. also granted a keepwell deed to the notes, under which it commits to make an equity investment, provide a shareholder’s loan or offer a combination of, both to ensure SGED and its guarantor, SGID, have sufficient liquidity to meet payments under the notes, Fitch said.

The outlook is stable.

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