Fitch upgrades Zhejiang Energy

Fitch Ratings said it upgraded Zhejiang Provincial Energy Group Co. Ltd.'s long-term foreign-currency issuer default rating and senior unsecured rating to A+ from A.

“The upgrade reflects the upward revision in Fitch's internal assessment of the Zhejiang provincial government's creditworthiness while the strong likelihood of ZEG receiving support from Zhejiang remains unchanged, according to our government-related entities (GRE) rating criteria. ZEG is the sole state-owned energy production and investment vehicle under the Zhejiang State-owned Assets Supervision and Administration Commission (Sasac),” Fitch said in a press release.

The agency also upgraded the long-term foreign-currency IDR of Zhejiang Energy International Ltd., ZEG's wholly owned subsidiary, to A+ from A. Fitch said it equalizes Zheneng International's ratings with ZEG based on its parent and subsidiary linkage rating criteria, underpinned by Zheneng International's moderate legal ties and strong operational and strategic ties with ZEG as its sole offshore financing platform.

The outlook is stable.

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