We expect State Grid to maintain its strong business performance and cash flows, and see an "extremely high" likelihood that the company will receive timely and sufficient extraordinary government support if needed. Under current regulations, State Grid can "pass through" power purchase costs to consumers, resulting in stable cash flows. But a lack of transparency and predictability over the tariff-setting mechanism is a credit constraint. For these reasons, we are affirming our 'AA-' long-term corporate credit rating and 'cnAAA' long-term Greater China regional scale rating on State Grid, the largest power transmission and distribution company in China. We are also affirming our 'AA-' issue rating and 'cnAAA' Greater China regional scale rating on the senior unsecured notes that State Grid
