S&P rates State Grid notes A+

Standard & Poor’s said it assigned an A+ long-term corporate credit rating to State Grid International Development Ltd., along with a cnAAA long-term Greater China regional scale rating.

S&P also said it assigned an A+ long-term issue rating and cnAAA long-term Greater China regional scale rating to the proposed issuance of senior unsecured notes that State Grid Europe Development (2014) PCL will issue and State Grid International will guarantee.

The outlook is stable.

The ratings reflect a view that State Grid International is a highly strategic subsidiary of State Grid Corp. of China, S&P said.

The company’s business has strategic importance to the Chinese government and therefore is likely to benefit from extraordinary government support via the parent company, if needed, the agency said.

State Grid is highly unlikely to divest of State Grid International because it is the group’s sole energy and power-investment platform to implement internationalization, which the group identifies as a key strategy, S&P said.

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