Moody's upgrades State Grid baseline rating

Moody's Investors Service said it upgraded State Grid Corp. of China's baseline credit assessment to A2 from A3.

Moody's also said it affirmed State Grid's A1 issuer rating, A1 senior unsecured debt ratings issued by State Grid Overseas Investment (2013) Ltd., State Grid Overseas Investment (2014) Ltd., and State Grid Overseas Investment (2016) Ltd., as well as the provisional A1 senior unsecured medium-term notes rating issued by State Grid Overseas Investment (2016).

The outlook is stable.

The upgrades reflect State Grid's demonstrated track record of maintaining a prudent financial policy and a disciplined growth strategy, thereby underpinning a gradual strengthening of the company's financial position, Moody's said.

The upgrades also consider the positive momentum observed in the tariff setting mechanism, notwithstanding the manageable reduction in tariffs implemented by the government as part of measures to support the domestic economy, the agency said.

Moody's said it expects State Grid to demonstrate continued financial strength, Moody's said.

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