Fitch rates Zhejiang Energy notes A

Fitch Ratings said it assigned an A rating to Zhejiang Provincial Energy Group Co. Ltd.'s dollar-denominated medium-term note program a rating of A.

The agency also said it assigned an expected rating of A to the proposed offshore senior unsecured notes to be issued under the program by its subsidiary, Zhejiang Energy International Ltd.

In place of a guarantee, Zhejiang has granted a keepwell, liquidity support and equity interest purchase covenant deed to ensure that Zhejiang Energy International has sufficient assets and liquidity to meet its obligations under the proposed dollar-denominated notes, Fitch explained.

The company is the sole state-owned enterprise energy platform owned by the Zhejiang State-owned Assets Supervision and Administration Commission (Sasac), the agency said.

The ratings are assessed based on the agency's government-related entities rating criteria, Fitch said.

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