Asia
Fitch Equalizes Ratings of Four Largest Chinese Gencos With Sovereign's
Fitch Ratings has equalized the ratings of China's four largest central government-owned power generation companies with that of the sovereign, according to a recent release.The rating agency views the companies, including China Huaneng Group, China Huadian, State Power Investment, and China Datang, as having an increasing role in the country's economic and industrial priorities.Fitch revised its assessment of the companies' roles in the preservation of government to "very strong" from "strong."The rating agency also upgraded the ratings of China Huaneng Group, State Power Investment, and China Huadian to A from A-.The power generators are necessary for China's growth and competitiveness as reliable low-cost power supply has become a key support for high-end manufacturing, AI development, and rapid electrification, Fitch said.The generators' capacity to fulfill increasing power demand will depend on their delivery of large-scale renewable projects, the rating agency said.However, system credit risk could rise if any of the generators experienced financial stress, especially given their similar business profiles and operational linkages, Fitch said.
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