S&P lifts Shanghai International Port

Standard & Poor’s said it raised the long-term corporate credit rating on Shanghai International Port (Group) Co. Ltd. to AA- from A+.

The agency also said it affirmed the cnAAA long-term Greater China regional scale rating.

The outlook is stable.

The upgrades reflect a view that the company can be effectively protected from extraordinary negative intervention from the local government, S&P said.

In the unlikely event of a local-government default, the agency said it believes there is a measurable likelihood that Shanghai International would not default.

The company’s operation is important for Shanghai as an international shipping center, therefore the local government is more likely to either partially sell down its significant stake in the port to ease liquidity stress, or seek support from the central government if needed, S&P said.

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