Fitch alters Shandong view to stable

Fitch Ratings said it affirmed Shandong Hi-Speed Holdings Group Ltd.'s (SHHG) long-term foreign- and local-currency issuer default ratings at A-, removed them from rating watch evolving and assigned a stable outlook. The agency placed the ratings on RWE in May.

Fitch also affirmed the A- rating on the $200 million of 3.95% senior unsecured bonds due May 2024 and removed it from RWE. The bonds were issued under a medium-term note program with a keepwell and equity interest purchase undertaking from Shandong Hi-Speed Group Co., Ltd. and a guarantee from SHHG. The bonds were issued by SHHG's wholly owned subsidiary, Coastal Emerald Ltd.

“The resolution of the RWE reflects Fitch's expectations that the linkages between SHHG and its parent SHS will remain stable after SHHG acquired the assets of Shandong Hi-Speed New Energy Group Ltd. (SHNE). SHHG is rated one notch below the rating on SHS, based on the parent's incentives to support the subsidiary under Fitch's Parent and Subsidiary Linkage Rating Criteria,” the agency said in a press release.

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