...Equalised with the Sovereign: The ratings of State Grid Corporation of China (SGCC) match those of the China sovereign (A+/Stable), the companys ultimate owner, as per Fitch Ratings Parent and Subsidiary Linkage methodology. This equalisation takes into consideration SGCCs strategic importance to China, as well as strong financial and operational support extended to SGCC via both monetary and regulatory policy support. Strategic Role in China: SGCCs monopoly concessions serve over 1.1 billion users in 26 provinces, or 88% of the national territory, representing approximately 80% of the nations total electricity consumption. SGCC also holds a critical role in the electricity value chain, as the largest purchaser, distributor and retailer of electricity. SGCC is responsible for making the large required investments to address the evolving power generation landscape ¡ both by type of generation as well as geographic location of generation. Positive Evolving Regulatory Environment Fitch considers...
