...Legal, Operational, Strategic Linkage: Fitch Ratings analyses the strength of these links between the sovereign and the non-financial state-owned corporate enterprise (SOE) to determine the appropriate rating linkage. Details of this approach are found in our Parent and Subsidiary Rating Linkage (PSL) criteria. More than Ownership: Sovereign ownership does not, in itself, indicate that a corporate should be rated higher than its standalone rating. Our assessment is driven by an analysis of operational and strategic ties in addition to the level of government oversight and control. Of the 73 Asia-Pacific SOEs publicly rated by Fitch, 69 are fully- or majority-owned by their respective sovereign. Of these 73, 14 have standalone ratings that are equal to or stronger than the state, 33 are rated using a top-down approach, 15 have ratings that benefit from some support, and 11 are rated on a purely standalone basis due to weak linkages with the state (Figure 1) SOE Stronger ¡ Constrained: Where...
